The dollar rose slightly, and the market's interest rate cut expectations may be excessive

According to Jinshi News, the US dollar has risen slightly for the second consecutive trading day, completely ignoring the market's expectation of about three interest rate cuts by the Federal Reserve this year. The options market shows that recent bearish sentiment towards the dollar has eased, with the front-end risk reversal indicator dropping to its lowest negative level in nearly a month. Some strategists believe that the expectations for interest rate cuts are excessive and may exceed the reasonable range supported by data, increasing the risk of a dollar rebound. Elias Haddad, Global Head of Market Strategy at Brown Brothers Harriman, stated that economic growth is strong and inflation levels remain above the Federal Reserve's 2% target.