According to BlockBeats, analysts at Monex Europe have indicated that the US dollar may strengthen if the Federal Reserve dampens expectations for interest rate cuts during the upcoming meeting. The market expects a possibility of rate cuts in June, but recent US data suggests that the Fed is unlikely to ease its policy before the fourth quarter.
Rates are expected to further increase price pressures, keeping inflation at high levels. The labor market remains strong, contrary to expectations of an economic slowdown. This situation leaves the Federal Reserve with limited options other than to delay market expectations for easing and emphasize the resilience of the underlying economic conditions.