Struggling dollar may be due a break

The US dollar is ending the week on the back foot against most currencies amid mounting expectation for a 50bp cut by the Fed next week. That comes in the wake of two seemingly coordinated pieces in the FT and WSJ which suggested it will be a close call between 25bp and 50bp, as well as comments from former New York Fed President Dudley saying that he would be pushing for a 50bp move. But we think the risks are now skewed towards the dollar rebounding, or at least stabilising, in the near term.