Fed to cut rates by 25 basis points in July - NAB

The US Federal Reserve will cut rates by 25 basis points this month, contrary to market pricing for a 50 basis point rate cut, according to analysts at National Bank of Australia (NAB).

Essentially, the central bank is forecasted to disappoint the market. Even so, the NAB analysts expect the US Dollar to depreciate in line with the historical data which shows the greenback almost always loses ground at the beginning of an easing cycle.