According to data reported by Jinshi, UBS global wealth management analysts say that the US dollar is currently oversold and is expected to enter a consolidation period. Federal Reserve Chairman Powell is unlikely to resign, and despite other central banks easing policies, the Fed remains cautious about interest rate cuts.
Analysts point out that in the medium term, the trend of a weakening 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 reducing dollar allocations when the dollar is strong and instead opting for currencies such as the yen, euro, pound, and Australian dollar.