HSBC Predicts US Dollar To Bottom Out in 2026
HSBC forecasts a potential bottoming out of the US dollar by early 2026, citing a combination of Federal Reserve rate cuts and political uncertainty. The DXY index has already declined 8.2% year-to-date, with Trump-era tariffs exacerbating the currency's weakness.
Market participants await speeches from key Fed officials this week for clues on December rate decisions. HSBC maintains confidence in the dollar's eventual recovery trajectory despite near-term bearish pressures.