HSBC analysts say the dollar is trading below levels implied by US rate expectations. Although market pricing has shifted from expected cuts toward potential hikes, the dollar’s response has been muted. HSBC cites still-easy US financial conditions and markets pricing a resolution to the Middle East conflict as factors weighing on the currency. The bank says the dollar needs explicit monetary-policy support; if the Fed does not reinforce tightening bets at next week’s meeting, the currency could

HSBC analysts say the dollar is trading below levels implied by US rate expectations. Although market pricing has shifted from expected cuts toward potential hikes, the dollar’s response has been muted. HSBC cites still-easy US financial conditions and markets pricing a resolution to the Middle East conflict as factors weighing on the currency. The bank says the dollar needs explicit monetary-policy support; if the Fed does not reinforce tightening bets at next week’s meeting, the currency could "struggle".