Analysts: The Fed's first rate cut may be implemented as early as September 17, but the next rate cut may have to wait until December
2 hours ago

According to Odaily's Planet Daily, analyst Jeremy Boulton says dollar bears may have to wait patiently, but this wait will come at a heavy cost. Last week's non-farm payroll report ended the dollar's rally that had unnerved traders, but a renewed decline may take time. The dollar's overall trend this year is undoubtedly downward, but the current decline is showing signs of fatigue. With many traders already positioned for short positions, any further decline is likely to be slow and limited. If this happens, the profits of dollar short sellers will be gradually eroded by interest rate differentials: the gap between the US and Japan is particularly wide, and the gap between the US and Europe is also considerable. While the sharp drop in the dollar triggered by Friday's non-farm payroll data may attract more short sellers, it also limits the dollar's potential for further decline. While the first interest rate cut could come as early as September 17, the next one may not happen until December 10. For traders betting on a falling dollar, this waiting period will incur significant capital costs. (Jinshi)

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