According to Reuters, Bank of America Merrill Lynch (BAML) in a recently published report said that it saw the next two weeks as “absolutely critical” in determining the timing of the Fed’s first rate cut.
“If there are another weak U.S. Payroll report, disappointing ISM data and a “bad” G20 summit outcome, the Fed would begin cutting interest rates in July,” BAML noted. “If U.S. data are mixed and markets are “content,” the Fed would begin lowering U.S. rates in September.”
BAML analysts still expect the Fed to cut rates by a total of 75 basis points by early 2020.
The US Dollar Index ignored these headlines and was last down 0.55% on a daily basis at 96.65.
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