HSBC: Expectation that the US dollar will remain soft until 2026


Paul McCulley, Global Head of FX Research at HSBC, stated: "Our baseline view is that the US dollar will generally weaken by the end of this year and continue until 2026." Key US labor market data will be released on Tuesday. The US overnight index swap curve may require very strong data to dispel expectations of Fed rate cuts in 2026, which would significantly boost the US dollar.
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