HSBC: The dollar could rise if the Fed cuts interest rates by 25 basis points on Wednesday and signals easing policy
Odaily reported that HSBC stated that if the Federal Reserve cuts interest rates by 25 basis points on Wednesday and signals further gradual easing of policy, the US dollar may rise. Paul McGuire, HSBC's foreign exchange analyst, said in a report that it is still difficult to say whether the Federal Reserve will cut interest rates by 25 basis points or 50 basis points. "HSBC Economics expects the Federal Reserve to start with a 25 basis point rate cut, while hinting at further easing in the future, but not to a large extent," McGuire said. He stated that this scenario would make the US dollar "turn to a better foundation," especially given that the market has priced in too much for a rate cut and there are signs of excessive short positions in the US dollar.
