Standard Chartered expects the Federal Reserve's interest rate cut in June to push the US dollar down

Standard Chartered stated that if prices or economic activity cool sufficiently, the Federal Reserve may be more inclined to relax monetary policy in the second quarter, which will push the US dollar to "slightly weaken" from mid year onwards. The analyst wrote in the report that our basic scenario assumption is that the Federal Reserve will lower interest rates before or in conjunction with other central banks, which is unfavorable for the US dollar as improved risk appetite and liquidity conditions will lead to selling of the US dollar. The optimistic sentiment of risk assets is unfavorable for the US dollar, but if the difference between the Federal Reserve's interest rates and other central bank rates is maintained, then the US dollar may be moderately weak rather than collapsing.