Analyst: The dollar may be affected by weak U.S. data

Odaily News XTB analyst Hani Abuagla stated in the report that if the U.S. third-quarter economic growth data is worse than expected, the dollar will be very weak. Any signs of economic cooling could reinforce expectations for further interest rate cuts by the Fed next year, thereby lowering yields and further weakening the dollar. The reduction in year-end liquidity and recent changes in global monetary policy may exacerbate this sensitivity. In particular, the recent rate hike by the Bank of Japan may encourage capital inflows into the yen, which will further pressure the dollar if U.S. economic data disappoints. (Jin10)