FX Bank Societe Generale: If the Federal Reserve keeps interest rates unchanged this year, the U.S. dollar may trade within a range

Gate News message, April 7: French bank Société Générale analyst Kit Juckes released a report stating that if the Federal Reserve keeps interest rates unchanged for the remainder of this year, the U.S. dollar could show a range-bound trading pattern. The report noted that market expectations are that, in addition to the Federal Reserve, all central banks in the G10 group (the ten-country group, comprising major advanced economies) will raise interest rates. Although among G10 economies, only Sweden’s forecast growth rate this year is expected to exceed that of the United States, these interest-rate expectations have limited the potential appreciation of the U.S. dollar. The report also mentioned that if the Federal Reserve were to cut rates sharply against a backdrop of high inflation and an expansionary fiscal policy, the U.S. dollar would likely fall.

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