HSBC: The dollar could rise if the Fed cuts interest rates by 25 basis points on Wednesday and signals easing policy

HSBC said the dollar could rise if the Federal Reserve cuts interest rates by 25 basis points on Wednesday and signals further gradual easing. Paul Michael, a foreign exchange analyst at HSBC, said in a report that it is difficult to say whether the Fed will cut interest rates by 25 basis points or 50 basis points. "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 put the dollar "on a better footing," especially given that the market has overpriced in rate cuts and there are signs that short positions in the dollar are excessive. (Jinshi)