UBS: Markets are betting too much on the Fed to cut rates

Ipek Ozkadzia, an analyst at UBS, said the dollar's current decline should be limited because the Federal Reserve is unlikely to cut interest rates as much as the market expects. The U.S. dollar index has fallen to a seven-and-a-half-month low. She said that market expectations for rate cuts at the Fed's September meeting and for the rest of the year are still too high. "Therefore, there is a possibility that the dollar will rebound." She pointed out that the upside potential of the euro against the dollar and the pound against the dollar should be limited. (Jinshi)