HSBC economist Paul Mackel said in a note that unless the Fed surprises with a rate hike, this week's policy decision is unlikely to provide fresh upside for the dollar. Fed chair KEVIN WARSH has acknowledged inf is above target and reiterated a commitment to price stability; if the meeting merely reflects those views, the dollar is unlikely to move significantly because markets have already priced a hike later this year. Mackel added some market participants are contemplating a surprise hike ak

HSBC economist Paul Mackel said in a note that unless the Fed surprises with a rate hike, this week's policy decision is unlikely to provide fresh upside for the dollar. Fed chair KEVIN WARSH has acknowledged inf is above target and reiterated a commitment to price stability; if the meeting merely reflects those views, the dollar is unlikely to move significantly because markets have already priced a hike later this year. Mackel added some market participants are contemplating a surprise hike akin to February 1994; if markets view such a surprise as prudent and welcome it, it would boost the dollar.