HSBC: The US dollar failed to benefit from the shift in interest rate expectations

Mars Finance News: According to Jintiao reports, HSBC analysts said in a report that the U.S. dollar exchange rate is currently below the level implied by market expectations for U.S. interest rates. With recent market expectations shifting from rate cuts to the possibility of rate hikes, the dollar’s reaction has been relatively limited. They believe this may reflect the U.S.’s accommodative financial environment and market expectations that the Middle East conflict will be resolved. If the Federal Reserve fails to support rate-hike expectations at next week’s meeting, the dollar “may find itself in trouble.”
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