Bank of America: Rate Cut and High Inflation Will Weigh on Dollar

BlockBeats News, August 21st, Alex Cohen from Bank of America said in a report that as the Federal Reserve appears ready to resume rate cuts with inflation still running high, the US dollar may further weaken. He pointed out that worse-than-expected July nonfarm payroll data and concerns about the Fed's independence have driven market expectations for a faster and larger rate cut, despite inflation still showing sticky signs. "Implementing potential rate cuts as inflation rises has created fertile ground for dollar depreciation." Bank of America expects the euro to dollar (EUR/USD) to rise from the current 1.1620 to 1.20 by the end of the year and further rise to 1.25 by the end of 2026. (FXStreet)