Survey: The Fed's interest rate cuts have been delayed again and again, and the strong dollar continues to be invincible

Foreign exchange strategists surveyed by Reuters believe that if the policy of the Federal Reserve and other major central banks diverges, the dollar will rebound firmly in the coming months, and may even be stronger than expected. The U.S. dollar has recovered from the slump at the end of 2023, calmly moving away from the long Reuters poll fall estimates over the past year. The dollar index has pumped 4.3% this year. According to a Reuters poll, 42 out of 58 forex strategists (nearly 75%) believe that the probability of a stronger dollar in the next three months is also greater than a depreciation. Paul Mackel, global head of forex research at HSBC, said we remain confident that the strong dollar will continue. It is clear from the economic activity data and the stickier inflation that a strong US economy will make it difficult for the Fed to start cutting interest rates.
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