Commerzbank: If the Federal Reserve releases dovish signals, the US dollar rally may not be sustained

(1) Antje Praefcke, an analyst at Commerzbank, stated that if the Federal Reserve prompts the market to scale back expectations of an interest rate hike later this year in its policy decision, the US dollar may decline. (2) She pointed out that the Federal Reserve's statement or Chair Waller's press conference may imply that the central bank considers inflation risks to be manageable and temporary. Given the recent drop in energy prices and lower-than-expected inflation data for June, it is unlikely that Waller will take an extremely "hawkish" stance. (3) Therefore, upward pressure on the US dollar driven by rising rate hike expectations is also unlikely to occur. The US Dollar Index fell by 0.11% on the day, closing at 101.29.