Delay in expected Fed rate cut will keep dollar strong

Brad Bechtel, global head of foreign exchange business at Jefferies, said that the non-agricultural data will definitely push down expectations of interest rate cuts. You can see that the market has priced in a rate cut after September. This should continue to support U.S. dollar strength on a broad basis. I don’t know if this will shake the carry trade crowd and the carry trade narrative. The theme of high yield and low yield has been prevalent in the foreign exchange market this year. This will continue to be a popular trade at least through the summer, but given the shift in interest rate cut expectations, the dollar may also continue to be supported.