Malayan Banking Berhad: Long-term strategy remains to sell US dollars on rallies
Malayan Banking Berhad stated that disappointing US economic data led to overnight market volatility, prompting adjustments to market pricing for the Fed's three rate cuts in 2024. We remain cautious about the excessive support for the US dollar. The US dollar index did rebound yesterday, mainly due to weakness in the euro and pound, with the yen providing some relief to the US dollar index rebound. We believe that if the non-farm payroll data conveys weakness (or strength) in the labor market, we may see some larger fluctuations, especially considering the current expectations for Fed rate cuts. Nevertheless, we still adhere to the strategy of selling the US dollar on rallies in the long term
On August 2nd, Jinshi Data reported that Malayan Bank stated that due to disappointing US economic data, the market experienced overnight volatility, prompting adjustments to market pricing for three rate cuts by the Federal Reserve in 2024. We remain cautious about the excessive support for the US dollar. The US dollar index did rebound yesterday, mainly due to the weakness of the euro and pound, with the yen providing some relief to the rebound of the US dollar index. We believe that if the non-farm data conveys weakness (or strength) in the labor market, we may see some larger fluctuations, especially considering the current expectations for rate cuts by the Federal Reserve. Nevertheless, we still adhere to the strategy of selling the US dollar on rallies in the long term