If Powell maintains a cautious tone, the dollar may strengthen further

ChainCatcher news, according to Jinshi reports, Dutch bank analyst Francesco Pesole stated that if Federal Reserve Chairman Powell continues to maintain a cautious stance on interest rate cuts in his upcoming speech, the dollar may strengthen further. Pesole pointed out that due to the U.S. government shutdown delaying the release of official employment data, Powell may maintain his previous cautious tone.

During this data vacuum, such an impact may still ferment in the market, and the dollar faces certain upward risks. However, he added that once the data is released, if it shows a deterioration in employment conditions, the dollar may weaken instead and refresh its seasonal low by the end of the year.