Kit Juckes, the Chief Global Foreign Exchange Strategist at BNP Paribas, stated in a report that the current expectations of a rate cut in the US in 2024 may be overstated, and the likelihood of a larger rate cut of 50 basis points in September is still unlikely. Refinitiv data shows that the US currency market currently expects a rate cut of 103 basis points in 2024, suggesting that the Federal Reserve will cut rates by at least 50 basis points in one of the remaining three meetings this year. Juckes said, "Unless the economy slows down significantly, the front end of the interest rate curve for the next six months has already reflected too much of a rate cut." He also noted that there is significant uncertainty regarding the extent of the economic slowdown.
