Analyst: The direction of the dollar depends on the strength or weakness of future data

According to Jin Ten, recent comments from Federal Reserve policymakers indicate a cautious attitude towards further rate cuts. Naga's analyst Frank Walbaum mentioned in a report that expectations for a rate cut by the Federal Reserve next month have been significantly reduced, with the market now pricing in a probability just below 50%. He stated that, nonetheless, investors still expect additional easing measures in 2026. Walbaum pointed out that the cautious tone of policymakers, along with a large amount of upcoming official U.S. data, could pose a downside risk for the dollar, with its direction depending on the strength or weakness of the data.