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According to HSBC Bank... there are factors that strengthen the value of the US dollar.

According to HSBC Bank... there are factors that strengthen the value of the US dollar.

By م.زهير الشاعر

Published: September 2, 2024

The British investment bank HSBC issued a research note on Monday, discussing its expectations regarding the movements of the US dollar in the upcoming period, as the British bank supported that there are reasons supporting the strength of the dollar in the short term.

In this context, HSBC stated that the dollar is moving at a weak pace, as the greenback has shown excessive weakness compared to the cautious expectations of the monetary easing cycle in the United States.

The bank also added that the US Federal Reserve is unlikely to cut interest rates as aggressively as the markets expect, which may provide support for the performance of the US dollar.

Furthermore, the British bank believed that the current economic conditions within the United States do not ensure that markets are pricing the magnitude and pace of US interest rate cuts (100 basis points by the end of the year).

Regarding the expectations for the next US Federal Reserve meeting, HSBC clarified that it is unlikely for the central bank to cut interest rates by 50 basis points.

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