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HSBC: US dollar may rise in the short term but the increase is difficult to last

Internet reports that the market generally expects the Federal Reserve to announce interest rates on Wednesday. HSBC Paul Mackel said that unless the Fed signals that "more interest rate cuts may be made in the future," the dollar may rise briefly after the announcement of the interest rate cut announcement. He pointed out that in order to further boost the already high interest rate cut expectations, the Federal Reserve needs to meet extremely high conditions. Data from the London Stock Exchange Group shows that the market currently expects the Federal Reserve to cut interest rates by about 140 basis points by the end of 2026. Based on this background, after Wednesday's announcement, there may be a short-term surge in the US dollar. But Mackel believes that given the prospect of faster interest rate cuts in the future, especially if employment data remains weak, any gain in the dollar may be temporary.

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