Portfolio management company Pictet predicted that the dollar could come under pressure as US inflation declines and interest rate cut expectations strengthen.
According to analysts of Pictet Asset Management, this could increase the pressure on the US dollar as inflation slows towards the end of the year and interest rate cut expectations strengthen.
“Central bank purchases may take place below”
Analysts said, “We maintain our defensive position by continuing our recommendation to reduce weight for the US dollar against gold and the Swiss franc, which is considered a safe-haven, with the expectation that central banks will continue to purchase.”
Arguing that the market’s expectation of a rate cut from the Fed this year is too aggressive, analysts pointed out that the Fed is expected to at least end the rate hike cycle. Analysts argued that the interest rate hikes that started in 2022 have finally begun to have an impact on the US economy.
