Julius Baer: The dollar may rebound if expectations of a sharp rate cut weaken, but the gains will be limited

David Meier, an economist at Julius Baer, ​​said in a report that if expectations of a sharp rate cut in the United States weaken, the dollar may rebound, but the gains will be limited. He said: "We do not think the dollar will return to its highs at the end of 2022, as overvaluation and low interest rates pose great resistance to its movement." Currencies such as the pound, Australian dollar and New Zealand dollar are expected to continue to strengthen against the dollar because these countries may not cut interest rates as quickly as the United States. He said that in particular, the pound and the New Zealand dollar, their central banks may have higher interest rates than the United States before the end of the year. (Jinshi)