Monex: Fed rate cut bets could keep the dollar weak

Monex Europe analysts said in a report that even though the US dollar stabilized before the weekend and economic data was weak on Friday, the dollar may continue to be weak. They stated that the Fed seems likely to cut rates again on September 17 and start a stable cycle of policy easing. They said that this should keep the dollar on the defensive in the coming months. Data released on Thursday showed that initial jobless claims last week rose more than expected, while inflation data for August was below expectations. There is limited tariff pass-through effect and no signs that price pressures are increasing, leading the market to increase bets on rate cuts.