British investment giant HSBC issued a research note on Monday, in which it addressed its expectations about the movements of the US dollar in the coming period, as the British bank agreed that there are reasons that support the dollar’s strength in the near term.
In this regard, HSBC said that the dollar is moving at a weak pace, with the greenback experiencing excessive weakness compared to the cautious expectations of the monetary easing cycle in the United States.
The bank also added that the US Federal Reserve is unlikely to cut interest rates as strongly as markets expect, which could provide support to the performance of the US dollar.
Moreover, the Bank of England believed that current economic conditions within the US did not guarantee markets pricing the size and pace of US rate cuts (100 basis points by the end of the year).
As for the outlook for the next US Federal Reserve meeting, HSBC made it clear that it is unlikely for the central bank to cut interest rates by 50 basis points.
Read also:Dollar hits two-week high against the euro
What stock should you buy in your next trade?
With stock valuations soaring in 2024, many investors feel uncomfortable investing more money in stocks. Not sure where to invest your money now? Check out our proven portfolios and discover high-potential investment opportunities.
In 2024 alone, ProPicks’ AI identified two stocks that jumped more than 150%, 4 more that jumped more than 30%, and another 3 that rose more than 25%. This is an impressive record.
With portfolios specifically designed to follow Dow Jones, S&P, technology and mid-cap stocks, you can explore various wealth building strategies.
