According to a report by Jinshi Data, UBS Global Wealth Management analysts indicate that the US dollar is currently oversold and is expected to enter a consolidation period. Federal Reserve Chairman Jerome Powell is unlikely to resign, and despite other central banks easing policies, the Fed remains cautious on interest rate cuts.
Analysts point out that in the medium term, the trend of a weaker dollar may resume. The slowdown in the US economy may be greater than in other regions, and the rising fiscal deficit will become a focal point, with the Fed possibly resuming interest rate cuts later this year.
UBS recommends taking advantage of the strong dollar to reduce dollar allocations and instead choose currencies such as the yen, euro, pound, and Australian dollar.