The Fed cutting rates won’t end the dollar cycle, it will take more than that — TradingView News

US dollar glass half full

A topical question at the moment is around the big US dollar cycle, given that we’re headed towards Fed easing. Deutche Bank today makes a compelling case that it won’t be initial Fed cuts that end the USD cycle as it usually only turns well after Fed cuts begin and once US rate fall below the G10 median.

DB also highlights that the current implied path of policy still leaves the US near the top of the G10 leaderboard on short-term rates by the end of 2025.

The US dollar has been persistently strong and is near the top of many historical ranges but that and Fed cuts alone aren’t enough to justify calling a top in the big dollar.

DB chart

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