BlockBeats news, August 22, currency options indicate that bullish sentiment for the dollar has risen to its highest level in three weeks, as traders bet that Powell will not take an overly dovish stance on interest rate cuts. 'The possibility of a 25 basis point rate cut in September will be kept open,' said Sonja Marten, head of foreign exchange and monetary policy research at Deutsche Bank, 'but I don't think he will be more aggressive than that.'
Marten stated that Powell may resist pressure from Trump to cut rates, and he will 'make it very clear that he will not take a path that may lack fundamental support due to pressure from the White House.' Nick Rees, head of macro research at Monex Europe, mentioned that if the market overly focuses on any hints from Powell about a possible rate cut in September, it could trigger an initial sell-off of the dollar, but this situation may be short-lived. 'Overall, we expect the tone to lean hawkish, which will further strengthen the dollar before the weekend.' (Jin Shi)