Mitsubishi UFJ: Even if the Federal Reserve signals a rate cut, the decline in the US dollar may be limited.

Mitsubishi UFJ analyst Derek Halpenny said in a report that Federal Reserve Chairman Powell may signal future interest rate cuts at Wednesday's meeting, but any decline in the dollar could be limited against the backdrop of conflict between Israel and Iran. He said that given weaker-than-expected employment market and inflation data, Powell's overall tone of speech could be interpreted as "dovish," implying rate cuts. This could lead to slightly higher expectations for rate cuts after September. However, willingness to sell the dollar may temporarily weaken until the prospects of the conflict between Israel and Iran become clearer.