Analyst: If the Federal Reserve resists cutting interest rates, the US dollar could rise.

Monex Europe analysts said in a report that if the Federal Reserve dampens market expectations of interest rate cuts at its meeting on Wednesday, the US dollar could rise. They stated that the market expects a rate cut in June, but recent US data shows that the Fed is unlikely to loosen policy before the fourth quarter. Due to tariffs further increasing price pressures, inflation remains high. The labor market continues to be stable, contradicting expectations of economic slowdown. This leaves the Fed with "little room for action other than delaying market easing expectations and emphasizing the flexibility of the potential economic situation".