UBS: The market is betting too much on the Federal Reserve to cut interest rates, and the decline of the dollar may be limited

UBS analyst Ipek Ozkadeksya said the dollar's current decline should be limited because the Federal Reserve is unlikely to cut interest rates as sharply as the market expects. The U.S. index has fallen to a seven-and-a-half-month low.
She said market expectations for the Fed's September meeting and rate cuts for the rest of the year were still too high. "As a result, the dollar is likely to rebound." She pointed out that the upside potential of the euro against the dollar and the pound against the dollar should be limited.