Yucheng Bank: If the Federal Reserve chooses to cut interest rates by 25 basis points, the dollar may benefit slightly

ChainCatcher news, UBS currency strategist Robert Mialich stated that the Federal Reserve may cut rates by 25 basis points next week instead of 50 basis points, which would be beneficial for the dollar but have minimal impact. Mialich said that a 25 basis point cut indicates that the Fed does not intend to significantly ease policy, which may prevent the dollar from further decline but is unlikely to trigger a strong recovery. "The euro against the dollar may continue to trade above 1.10," he said. However, if the Fed cuts by 50 basis points, the currency pair could break above 1.12, as this would indicate that the U.S. economy is worse than the data suggests. (Jin Shi)