Wells Fargo predicts that the Fed will not cut interest rates soon, and the dollar is expected to strengthen further

Wells Fargo predicts that the Fed will not cut interest rates soon, leading to further strengthening of the dollar. CHIDU NARAYANAN, the bank's chief Asia-Pacific strategist in Singapore, pointed out that as other G10 central banks may cut interest rates before the Fed's September action, the widening interest rate differential will further support the dollar. NARAYANAN also mentioned that next week's CPI inflation data will be key and expects further upside for USD/JPY. He predicts that USD/JPY may approach 156-157, and expects the Japanese Ministry of Finance to tolerate further slight weakness in the yen, but expressed concerns about the speed of yen depreciation and the serious deviation from fundamentals.