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Interest rate cuts are expected repeatedly, and Goldman Sachs continues to look at more dollars.

Release Time:2024-05-22

The expectation of the Fed's interest rate cut is still uncertain, and the global easing cycle seems to have begun, and the dollar is expected to continue to be strong.

According to media reports, the team led by Goldman Sachs strategists Kamakshya Trivedi and Joseph Briggs said in the report:

"If the Fed remains stable and other regions choose to continue easing policies, then policy differences may keep the dollar strong for a longer period of time."

The team also said that if other central banks around the world start to cut interest rates "earlier and more actively" than the Federal Reserve, it will help the United States achieve its inflation target.

The report predicts that Canada, Britain and the euro zone will all cut interest rates in June.

Since the beginning of this year, with the continuous fluctuation of the Fed's interest rate cut expectations, the US dollar has appreciated against G10 Group currencies, and the US dollar index has risen by 3.25%.

Last April, the CPI data dropped significantly, and the market rekindled the expectation of interest rate cuts. However, since this week, many Fed executives have voiced intensively, and the overall tone tends to be "not in a hurry to cut interest rates", indicating that more evidence of downward inflation is needed.

At the same time, European Central Bank President Lagarde said that interest rates may be cut next month, and the rapid growth of prices has been basically curbed.

Risk warning and exemption clause

The market is risky and investment needs to be cautious. This paper does not constitute personal investment advice, nor does it take into account the special investment objectives, financial situation or needs of individual users. Users should consider whether any opinions, viewpoints or conclusions in this article are in line with their specific situation. Invest accordingly at your own risk.

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