HSBC: The US dollar is unlikely to rise significantly unless the Federal Reserve raises interest rates.

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ME News update, July 27 (UTC+8). In a report, Paul Mackel, HSBC’s economist, said that unless the Federal Reserve unexpectedly hikes rates, this week’s decision is unlikely to provide the U.S. dollar with any new upside catalyst. Federal Reserve Chair Waller has acknowledged that inflation is above target and expressed a commitment to price stability. He said that if this week’s meeting merely aligns with these views, the U.S. dollar is unlikely to surge significantly, since the market has already priced in rate hikes later this year. “However, we also recognize that some people are considering the idea of an unexpected Fed rate hike, just as it did suddenly in February 1994.” He said that if the market views it as a cautious move and welcomes it, that would boost the U.S. dollar. (Source: Jin10)
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