Analysts: Global central banks may enter the "strongest synchronized" easing cycle in 08 years Shorting the dollar may be a big mistake

Huitong Financial News Some analysts said that the world's major central banks are likely to enter the most synchronized interest rate cut cycle since 2008, which will bring support to the dollar that has begun to rebound. Wall Street started the year betting that almost all G-10 currencies would rise against the dollar, as they expected a series of aggressive rate cuts by the Federal Reserve. The reality is that the U.S. index rose more than 2% this quarter, with the U.S. dollar outperforming most major rival currencies. The US dollar's performance reflects both a rebalancing of bets on the size of the Fed's rate cuts and a market recognition that the US will not be alone. Institutions and economists predict that 10 of the world's 11 major central banks, including the Federal Reserve, will cut interest rates in the second half of this year as global economic growth weakens, which will mark the most synchronized policy easing cycle in 16 years. In addition, the analysis shows that when 80% or more of central banks ease policy in sync, the dollar will rise by more than 3% per quarter on average. The US dollar is expected to maintain this trend this time around, as the Fed's policy rate is likely to remain the highest among major advanced economies, second only to New Zealand by the end of the year.