TD Securities: Even if the Federal Reserve does not cut interest rates, the dollar may still weaken

According to Jinshi News, strategists at TD Securities stated in a report that even if the Federal Reserve does not cut interest rates in the future, the dollar may still weaken this year. They pointed out that in the context of the standoff between the U.S. and Iran and high oil prices, the expectation for the Federal Reserve to cut rates in 2026 has been removed, and instead, interest rates are expected to remain stable. The strategists emphasized that they still maintain the forecast path for a weaker dollar in 2026 and believe that even if the Federal Reserve shifts to raising rates in the future, the magnitude of its rate hikes may be lower than that of other major central banks. It is expected that once the Strait of Hormuz reopens, the dollar index will continue to fall below the 98 mark.