Not yet Time to Shut Bearish View on Dollar

Core Viewpoint - HSBC anticipates that the U.S. dollar will reach its lowest point early next year, suggesting a trend towards a weaker USD based on historical patterns of Federal Reserve rate cuts during periods of no recession [1] Group 1 - HSBC's expectation of the dollar bottoming out early next year indicates a significant shift in currency dynamics [1] - The analysis highlights that previous instances of Fed rate cuts, while the U.S. economy avoided recession, correlate with a weaker U.S. dollar [1]