Yushin Bank FX Strategist Robert Mialich expects the Fed to cut rates by 25 basis points next week, rather than 50, which would be positive for the dollar but a minor impact.

Mialich stated that a 25 basis point cut suggests the Fed is not planning to loosen policy dramatically, which could prevent further dollar declines but is unlikely to spark a strong rebound. “Euro/dollar could continue to trade above 1.10,” he said. However, if the Fed cuts by 50 basis points, the pair could break above 1.12, as that would indicate the U.S. economy is in worse shape than data suggests. (Gold Ten)