Analysts: Longing data is needed to confirm the dollar's downward trend

Christopher Wong, forex strategist at OCBC Bank in Singapore, said, “The U.S. exceptionalist narrative continues to show signs of softening, which gives the market an excellent excuse to increase Fed rate cut expectations and sell dollars.” However, analysts warn that the latest US inflation data only provides a microcosm of global price trends, and further data is needed to confirm the dollar’s downward trend. Stephen Innes, managing partner at SPI Asset Management, said, “We may need some help from a downturn in the U.S. labor market.” ”