BNP Paribas: US dollar trend may deviate from historical trends

Golden Finance reported that BNP Paribas strategists said in a report that if the U.S. Federal Reserve announced a rate cut on Wednesday, the dollar's trend may deviate from historical trends. From a historical perspective, if there is no recession after the first interest rate cut, the dollar will often rise in the following months supported by capital inflows into the US stock market; and if there is an economic recession, the dollar will usually benefit from the inflow of safe-haven funds. However, this situation may be different: if the possibility of an economic recession increases, the US dollar may fall instead - because the current trading logic of the US dollar is more in line with the volatility law of risky assets.