HSBC: The US dollar may be about to bottom out as the likelihood of a Fed rate cut in 2026 is low

Jinse Finance reported that strategists from HSBC Global Research stated in a report that the US dollar may bottom out in the first quarter of 2026 or earlier, followed by a rebound. They believe the Federal Reserve may cut rates again in December, but the likelihood of further rate cuts in 2026 is low. Refinitiv data shows that there are differing views in the currency market regarding a rate cut in December, but the cumulative rate cut is expected to be 85 basis points by the end of 2026. HSBC forecasts that the euro against the US dollar will rise to 1.20 in the fourth quarter of this year and the first quarter of next year, then fall back to 1.18 for the remainder of 2026.