HSBC: Dollar Unlikely to Surge Without Unexpected Fed Rate Hike

HSBC warns the US dollar lacks upside catalysts unless the Fed raises rates unexpectedly, as markets have already priced in future hikes and current inflation rhetoric.

Woofun AI reports that HSBC economist Paul Mackel stated the US dollar is unlikely to see significant gains unless the Federal Reserve implements an unexpected interest rate increase. The bank notes that the Fed's decision this week may not provide a new catalyst for dollar appreciation, given that markets have already incorporated expectations of rate hikes later this year. Federal Reserve Chairman Waller acknowledged that inflation remains above target and reaffirmed a commitment to price stability. HSBC concludes that if the meeting merely aligns with these existing views, substantial dollar strength is improbable.