Robert Mialich, foreign exchange strategist at UniCredit, said the Federal Reserve could cut interest rates by 25 basis points next week instead of 50 basis points, which would be good for the dollar but have little impact. Mialich said a 25 basis point cut means the Fed is not planning to ease policy aggressively, which could prevent the dollar from falling further but is unlikely to trigger a strong recovery. "EUR/USD could continue to trade above 1.10," he said. However, if the Fed cuts interest rates by 50 basis points, the pair could break through 1.12, as it would suggest that the U.S. economy is worse than the data suggest.