HSBC Warns of Anti-Dollar Bubble as De-Dollarization Accelerates
HSBC has intensified warnings about a potential anti-dollar bubble forming in global markets, with analysts identifying dangerous crowd-think behavior among investors. The bank's research team, led by Paul Mackel, notes traders are extrapolating recent dollar weakness into long-term projections—creating a mirror image of the bullish dollar sentiment seen in prior years.
The Dollar Spot Index's 8% decline this year fuels these dynamics as de-dollarization trends reshape currency markets. Market volatility projections for 2025 suggest sustained turbulence, with HSBC cautioning that current dollar collapse fears may be reaching unsustainable extremes.