UBS: Next week's data is expected to increase the probability of a Fed rate cut before the end of the year.
TL;DR
UBS strategists predict weak US economic data next week will raise expectations for a December Fed rate cut, likely weakening the US dollar.
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According to a report by Odaily Odaily, strategists at UBS Global Wealth Management stated that the US dollar may weaken due to weak US data expected next week. Key data includes Tuesday's retail sales, consumer confidence, and pending home sales, while Wednesday will see durable goods orders, weekly initial jobless claims, and new home sales. The strategists noted that this data will influence market expectations for economic growth, inflation, and Federal Reserve policy. "We still expect the upcoming data to be weak enough to push market expectations upwards towards a December rate cut, which will put pressure on the dollar before the end of the year." (Jinshi)