HSBC with two reasons the USD should strengthen

HSBC is looking for a bounce for the USD, saying that:

1. The dollar looks to have weakened excessively relative to dovish expectation for Fed rate cuts

2. Says the economy in the US does not warrant the market pricing of the rate of Fed easing (referring to expectations of 100bp of cuts by year end)

HSBC do not see a 50bp rate cut ahead.

This article was written by Eamonn Sheridan at www.forexlive.com. Source