Time has come to buy dollar, BCA says, ahead of Fed rate-cutting cycle
snapped its four-week losing streak on Friday, and some believe the time has come to buy the greenback as this fighting spirit is set to continue.
The dollar has tended to be flat-to-down in most cycles leading to the first rate cut by the Federal Reserve. But the dollar is now already at its lowest point compared to previous cycles, assuming the Federal Reserve begins interest-rate cuts in September, suggesting the room for significant downside could be limited.
"If our thesis is correct and the Fed does not cut rates by more than what is already priced in markets, this bodes well for the dollar," BCA said. But not everyone is convinced that the dollar's recent strength marks the start of a prolonged rally.
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