Analysts: The Federal Reserve (FED) may signal a rate cut, but the dollar's fall is limited under geopolitical conflicts.

On June 18, Mitsubishi UFJ analyst Derek Halpenny stated in a report that The Federal Reserve (FED) Chairman Powell may signal future interest rate cuts at Wednesday’s meeting, but any fall in the dollar could be limited against the backdrop of the conflict between Israel and Iran. He mentioned that, given the employment market and inflation data being weaker than expected, the overall tone of Powell’s speech may be interpreted as “dovish,” suggesting interest rate cuts. This could lead to a slight rise in expectations for rate cuts after September. However, the willingness to sell the dollar may temporarily weaken until the outlook of the conflict between Israel and Iran becomes clearer.