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HSBC: Dollar May Rise in Short Term, But Gains Unlikely to Last
Summary: According to sources, it is widely expected in the market that the Federal Reserve will announce a rate cut on Wednesday. HSBC's Paul Mackel stated that unless the Fed signals 'more rate cuts in the future,' the dollar may see a brief uptick after the rate cut announcement. He noted that for the already high ...
According to sources, it is widely expected in the market that the Federal Reserve will announce a rate cut on Wednesday. HSBC's Paul Mackel stated that unless the Fed signals 'more rate cuts in the future,' the dollar may see a brief uptick after the rate cut announcement. He noted that for the already high rate cut expectations to increase further, the Fed would need to meet very high conditions. Data from the London Stock Exchange Group shows that the market currently expects a cumulative rate cut of around 140 basis points by the end of 2026. Against this backdrop, there is a possibility of the dollar experiencing a short-term rally after the Wednesday announcement. However, Mackel believes that considering the prospect of faster rate cuts in the future, especially if employment data remains weak, any gains in the dollar could be temporary.
