Global financial services company Ebury expects the Federal Reserve to cut interest rates by 25 basis points later, and hinted that further rate cuts would be gradual, which would provide some short-term support for the dollar.

"A 50-basis-point rate cut does not seem to be on the cards, and we do not believe the Federal Open Market Committee will be prepared to fully endorse the market pricing of interest rates," Matthew Ryan, market strategist at Ebury, said in a report. He said that the forward pricing of 115 basis points of rate cuts this year seems excessive. He said the Fed could cut rates by 25 basis points in September, November, and December.