HSBC Global Investment Research said the U.S. dollar is likely to find its bottom in early 2026, as further interest rate cuts from the Federal Reserve and uncertainty over the next Fed chair weigh on sentiment.
- The bank noted that a combination of softer monetary policy and political ambiguity could extend downside pressure into next year before stabilisation sets in.
In the near term, HSBC said USD bears face key tests this week, with a packed schedule of Fed speakers and U.S. data releases likely to influence direction.
- Fed officials Cook, Bowman, Williams, Musalem and Vice Chair Jefferson are all slated to speak, providing potential guidance on whether the central bank will deliver another rate cut in December.
- Meanwhile, a series of U.S. activity indicators — including ISM manufacturing and services surveys and the ADP private payrolls report — will likely play an outsized role in shaping short-term dollar momentum.
This article was written by Eamonn Sheridan at investinglive.com.