UBS: Market's bet on Fed rate cut is too high, dollar's decline may be limited

Swiss bank analyst Ipek Ozkardeskaya said that the current decline of the dollar should be limited, as it is unlikely that the Federal Reserve will cut interest rates significantly as the market expects. The dollar index has now fallen to a seven-and-a-half-month low. She stated that market expectations for a Fed rate cut in its September meeting and for the rest of this year are still too high. "Therefore, there's potential for a rebound in the dollar," she pointed out, adding that both euro-to-dollar and pound-to-dollar have limited upside potential.