Potential Impact of Global Economic Decisions on U.S. Dollar

According to Odaily, Morgan Stanley strategists have highlighted in a report that the U.S. dollar may reach new lows if upcoming employment data and decisions by the European Central Bank and the Bank of Japan result in unfavorable interest rate differentials for the dollar. They noted that a weak non-farm employment report, expected to be released on Tuesday, could intensify market expectations for the Federal Reserve to cut rates again by the first quarter of next year. The European Central Bank might leave room for a rate hike during its meeting on Thursday, while the Bank of Japan could raise rates on Friday and indicate further increases in the future. Overall, the convergence of interest rates between the U.S. and other countries will continue to play a crucial role in driving the dollar lower.