HSBC said the dollar could rise if the Federal Reserve cuts rates by 25 basis points on Wednesday and signals further gradual easing. Whether the Fed cuts by 25 basis points or 50 basis points is too early to tell, Paul Michael, a currency analyst at HSBC, said in a note. "HSBC Economics expects the Fed to start with a 25 basis point rate cut while signaling further easing in the future, but not by much." Michael said such a scenario would shift the dollar to better footing, especially given that the market has overpriced in a rate cut and signs of excessive short dollar positions.