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HSBC: The dollar may soon hit bottom, as the likelihood of further rate cuts by the Fed in 2026 is low.
On November 19, HSBC stated that the US dollar may bottom out in early 2026 and then begin to rise. The bank expects the Fed may cut interest rates in December but believes the likelihood of further cuts in 2026 is low. However, the market currently expects about 85 basis points of easing by the end of the year. HSBC predicts that the euro will rise to 1.20 USD by the end of this year and early next year, before falling back to 1.18 USD for the remainder of 2026.