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Natixis economists said the dollar will continue its cyclical decline.
Fed rate cut expectations resurface as inflation continues to decelerate
We remain in favor of a cyclical decline in the USD in the second half of the year, given the potential for a recession in the US economy amid a marked tightening of bank credit conditions.
In addition, as inflation continues to decelerate, Fed rate cut expectations will reappear, thus weighing on the dollar again.
