Mitsubishi UFJ: The dollar may weaken in the second half of the year, as the latest developments support the Fed's more aggressive interest rate cuts.

Golden data on July 24th, Mitsubishi UFJ Securities analysis said that the dollar may weaken in the second half of 2024, because recent developments support the Fed’s more aggressive interest rate cuts. Analysts at the bank said in a report that the sharp weakening of US June inflation data provides the strongest evidence to date that inflation is slowing, which should encourage the Fed to show greater confidence at the July 31 meeting and achieve its inflation target. They said that if the US sees another soft inflation data in the next month, it will give the green light to the Fed to start cutting interest rates in September.