TechFlow, Oct 14 — According to Jinshi Data, there is intense debate in the market over whether the U.S. dollar has already hit bottom, but HSBC believes the dollar is likely to weaken further.
Paul Mackel, Head of Global FX Research at HSBC, stated in a report: "When the Federal Reserve restarts its easing cycle while the U.S. economy avoids recession, historical experience shows that the dollar tends to weaken—a pattern difficult to break." While discussions about a renewed acceleration in the U.S. economy, along with recent political turmoil in France and Japan, do prompt reflection on the dollar's sideways movement since July, market sentiment remains volatile. The allure of believing in dollar strength is tempting, but it is still too early to abandon a bearish outlook. Mackel expects the dollar to reach its bottom in early next year.
