HSBC: The U.S. Dollar Is Likely to Weaken Again, Possibly Bottoming Out Early Next Year

Odaily Planet Daily News – There is intense debate in the market about whether the U.S. dollar has already bottomed out, but HSBC believes the dollar is likely to weaken further. Paul Mackel, Global Head of FX Research at HSBC, stated in a report: "When the Federal Reserve restarts its easing cycle and the U.S. economy avoids a recession, historical experience suggests the dollar will weaken. This pattern is hard to break." While discussions about the U.S. economy reaccelerating and recent political turmoil in France and Japan do provide food for thought regarding the dollar's sideways movement since July, market sentiment remains unpredictable. The desire to believe in a stronger dollar is certainly tempting, but it is still too early to abandon a bearish outlook. Mackel expects the dollar to bottom out early next year. (Jin10)