🚨 Analyst: If the Federal Reserve continues to cut interest rates, the US dollar is likely to weaken—stocks and metal assets may welcome favorable winds

According to Jinshi News, analyst Neil Keene has given a clear judgment:

➡️ The tone of this week's Federal Reserve decision may not be as hawkish as the market fears

➡️ If the willingness to cut interest rates is further confirmed, it will directly lower the dollar

📉 Why will the dollar weaken?

Keene provided three main reasons:

1️⃣ Rate cut expectations = decline in dollar interest rate advantage

The fundamental strength of the dollar is the interest rate spread; once rates are cut → attractiveness decreases.

2️⃣ Seasonal factors (end of the year)

Typically, demand for the dollar decreases at year-end, and liquidity shifts towards risk assets.

3️⃣ Fund flows into risk assets

With risk appetite warming, funds often flow out of dollar assets and into the stock market and commodities.

📈 Who might benefit?

• US stocks (liquidity warming)

• Metals (such as gold, copper)

• Emerging market assets (stimulated by a weaker dollar)

The market currently expects:

➡️ This FOMC will cut rates by 25bp → range to 3.5%–3.75%

📝 One-sentence summary

If the Federal Reserve is not hawkish tonight, the dollar will find it hard to be strong;

A weak dollar = the stock market, metals, and multi-assets are likely to welcome another wave of market activity.