Analysis: If Powell maintains a cautious tone, the US dollar may strengthen further.

On October 14, ING analyst Francesco Pesole stated that if Fed Chairman Powell maintains a cautious stance on interest rate cuts during his later speech, the dollar may strengthen further. Pesole pointed out that due to the U.S. government shutdown delaying the release of official employment data, Powell may continue to adopt a cautious tone. "During this data vacuum, this effect may continue to brew in the market, and the dollar faces certain upside risks." However, he added that once the data is released, if it shows a deterioration in employment conditions, the dollar may weaken instead and hit new cyclical lows by the end of the year. ( Jin10 )

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