BBH: The Fed's rate cut is expected to be lower than expected, which will support the US dollar

Brown Brothers Harriman & Co. (BBH) said the market has overreacted to recent weak U.S. data, and the Federal Reserve may still be less aggressive than other central banks in easing monetary policy, thereby supporting the dollar. Senior market strategist Elias Haddad said that looking at the data as a whole, economic growth is still above trend, indicating that the market has overpriced in aggressive easing again. This week's U.S. economic data is expected to prompt traders to reassess their bets on the Fed's easing policy. He added: "This week's data should show that, contrary to market expectations of aggressive easing by the Federal Reserve, the U.S. economy is relatively healthy, and the dollar is expected to rebound further if and when repricing occurs." (Jinshi)