Commerzbank: Rate Cut Expectations and Trump’s Pressure May Limit Dollar Rebound

According to a report by Jinse Finance, Michael Pfister from Commerzbank's research department stated that the US dollar may rise in the short term, but the increase is likely to be limited. The recent weakness of the dollar may currently be somewhat overdone, allowing for a slight rebound. However, the prospect of Federal Reserve rate cuts should curb any rebound in the dollar. In addition, actions such as Trump calling for rate cuts and criticizing the Fed's independence will also dampen the recovery. Commerzbank expects the Federal Reserve to cut rates in September. Therefore, he believes the current recovery phase of the dollar is unlikely to last long. (Jin10)