Analysts: Any signs of an economic slowdown could strengthen expectations of further interest rate cuts by the Federal Reserve next year.

XTB analyst Hani Abuagla stated in a report that the dollar will be very vulnerable if US third-quarter economic growth data falls short of expectations. Any signs of an economic slowdown could strengthen expectations of further interest rate cuts by the Federal Reserve next year, thereby lowering yields and further weakening the dollar. Reduced year-end liquidity and recent changes in global monetary policy could exacerbate this sensitivity. In particular, the Bank of Japan's recent rate hike may encourage capital inflows into the yen, which would further pressure the dollar if US economic data disappoints. (Jinshi)