Bank of America: Rate cuts and high inflation will depress the dollar

[Bank of America: Rate cuts and high inflation will weigh on the dollar] Alex Cohen from Bank of America stated in a report that as the Fed seems ready to restart rate cuts in the face of persistently high inflation, the dollar may weaken further. He pointed out that worse-than-expected July non-farm payroll data and concerns about the Fed's independence have pushed market expectations for faster and larger rate cuts, even as inflation continues to show signs of stickiness. "Implementing potential rate cuts amid rising inflation has created fertile ground for the depreciation of the dollar." Bank of America expects the EUR/USD to rise from the current 1.1620 to 1.20 by the end of the year, and further to 1.25 by the end of 2026.