Fed’s explicit pivot further reinforces OCBC Bank’s sell-on-rally view on the US Dollar.
Dovish pivot sets the tone
Given Fed’s pivot, the next leg of USD’s decline will depend on 1/ how much more markets expect the Fed to cut (dependent on US data) and 2/ how global growth pans out.
If global growth can trudge along well, alongside a more sustained exports recovery momentum seen in Asia so far, then counter-cyclical USD could further stay under pressure for the coming months ahead.
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