Analyst: Powell to Uphold Cautious Stance, Potentially Supporting US Dollar in the Short Term

BlockBeats News, August 20th. Jane Foley, Rabobank's foreign exchange strategist, stated in a report that if Federal Reserve Chairman Powell remains cautious about a rate cut in his upcoming speech, speculators may unwind their previous short positions on the US dollar in the short term. Both the market and Rabobank expect the Fed to cut rates in September, reflecting a weakening labor market. However, Foley pointed out that Powell may still be cautious about easing policy in his speech at the Jackson Hole central bank symposium this Friday. This stance could provide support for the dollar in the short term. Nevertheless, Rabobank still expects the Euro to US Dollar (EUR/USD) to rise to 1.20 in the spring of next year as the market anticipates further rate cuts. (FXStreet)