Analysts say that the strong GDP data in the second quarter of the United States will not affect the Federal Reserve's interest rate cut in September.

The initial annualized quarterly rate of real GDP in the United States for the second quarter was 2.8%, higher than economists' expectations. The initial annualized quarterly rate of the core PCE price index for the second quarter was 2.9%, higher than expected but lower than the previous quarter's 3.7%.

Kyle Chapman, a foreign exchange market analyst at Ballinger Group, said, "The decline in personal savings rate is a key data point worth noting, as real disposable income growth is slowing down, but consumer spending is increasing. This is hardly a sustainable growth path. For me, the trend of the US economy weakening has not changed

The market expects the Federal Reserve to keep interest rates unchanged on July 31st, but the market has fully "digested" the expectation of the Fed cutting interest rates in September.

Stephen Brown, Deputy Chief North American Economist at Barringer, said, "The recent loosening of the US labor market conditions and signs of slowing price growth still mean that there is a high possibility of a rate cut at the September meeting

Recently, the Federal Reserve has stated that its concerns about the job market situation outweigh its worries about the inability of inflation to fall back in the coming months.

Chapman said, "It is difficult to see where the current level of growth will come from in the short term due to the impact of a significant decrease in fiscal spending, depletion of savings, and a slowdown in the labor market

Ali Jaffery, an economist at CIBC Capital Markets, said, "Concerns about the downside risks in the labor market, as well as sufficient progress on inflation (clearly more housing anti inflation is brewing), will still be enough to prompt the Federal Reserve to launch an easing cycle in September

Based on the above information, it can be seen that if the Federal Reserve really ignores strong GDP data and implements a rate cut in September as predicted by analysts, it will be detrimental to the US dollar index, and investors need to remain vigilant about this.

Daily chart of the US dollar index