HSBC: US ​​dollar may rise in the short term, but the increase is difficult to last

Odaily Planet Daily News The market generally expects the Federal Reserve to announce a rate cut on Wednesday. HSBC Paul Mackel said the dollar may briefly rise after the rate cut statement was released unless the Fed sends a signal that “more interest rate cuts in the future.” He pointed out that the Fed needs to meet extremely high conditions to further push up the already high interest rate cut expectations. According to data from the London Stock Exchange Group, the market currently expects that the Fed's cumulative interest rate cut will be about 140 basis points by the end of 2026. Based on this background, after the announcement of Wednesday's statement, there may be a short-term surge in the US dollar. But Mackel believes that any gains in the U.S. dollar may be temporary given the prospect of a faster rate cut in the future, especially if employment data continues to be weak. (Jin Shi)