TD Securities: Fed rate cuts may boost the dollar but remains bearish in the long term

According to ChainCatcher, TD Securities strategists said the dollar should rise if the Fed cuts interest rates by 25 basis points next week but is cautious about further interest rate cuts. Strategists pointed out that markets expect continuous rate cuts, but the Fed may curb these expectations, highlighting potential inflation risks. Powell may signal that the Fed is not on the road to a predetermined rate cut and will continue to monitor upcoming data to assess risks. This will boost the dollar, but in the long run, the dollar will still fall and any rebound is a good opportunity to sell.