HSBC: dollar could rise if Fed cuts rates by 25bps on Wednesday and signals gradual easing
The dollar could rise if the Federal Reserve cuts interest rates by 25 basis points on Wednesday and signals further gradual easing, HSBC said. Whether the Fed cuts rates by 25 basis points or 50 basis points is hard to say at this point, HSBC foreign exchange analyst Paul McCall said in a report. ‘HSBC Economics expects the Fed to start with a 25 basis point rate cut, while hinting at further easing in the future, but not by much.’ Michael said this scenario would ‘shift the dollar to a better base’, especially given the overpricing of rate cuts in the market and signs of excessive short dollar positions.
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