SINGAPORE: Professional investors see the dollar sliding even further from last year’s two-decade highs, as the market has underpriced the Federal Reserve’s oncoming easing cycle.
Some 87% of 331 survey respondents expect the Fed to cut interest rates to 3% or below — some significantly so — in a loosening cycle that 40% believe will start this year, according to the latest MLIV Pulse survey. That stands in contrast to market pricing that puts the implied policy rate around 3.05% in two years.
Correspondingly, professional investors are negative on the dollar, with a 17 percentage-point gap between bears and bulls. Many explicitly state that they…
