Societe Generale: If the Fed holds rates steady this year, the dollar is likely to remain range-bound.

In a report, Societe Generale analyst Kit Juckes stated that if the Federal Reserve maintains interest rates unchanged for the remainder of the year as expected, the dollar is likely to fluctuate within a range. He pointed out that the market anticipates interest rate hikes from all G10 central banks except the Fed. Although among the G10 economies, only Sweden's projected growth rate this year exceeds that of the United States, these interest rate expectations limit the dollar's appreciation. However, if the Fed significantly cuts interest rates against a backdrop of high inflation and loose fiscal policy, the dollar is likely to fall. (Jinshi)