Global central banks are expected to enter the "strongest synchronized" easing cycle since 2008, and shorting the dollar may be a big mistake

Sina Financial News The world’s major central banks are likely to enter the most synchronized interest rate cut cycle since 2008, which will bring support to the dollar that is beginning to rebound. Wall Street started the year betting that almost all G-10 currencies would rise against the dollar, as they expected a series of aggressive rate cuts by the Federal Reserve. However, the reality is that the dollar index rose more than 2% for the quarter, with the dollar outperforming most major rival currencies. “Shorting the dollar aggressively could be a big mistake,” said Vishnu Varathan, head of economics and strategy at Mizuho Bank. "The Fed’s pivot is bound to lead to a big win for shorting the dollar – this is a very one-sided statement. This beast is likely to be capricious, and not just optimistically say that everything is over. ”