HSBC: If the Fed maintains interest rates, the United States dollar may fall

On 29 July, the HSBC analyst Daragh Maher stated in a report that, given that the market had digested some of the interest rate hike expectations, the United States dollar might be softer if the Fed announced that interest rates would remain unchanged. He stated that, in order to contain the initial decline in the dollar, at least three Fed members would be required to vote for the increase. He pointed out that if the Fed did raise interest rates, the resulting initial increase would probably go well beyond the possible initial fall when interest rates remained constant. According to Maher, “if the rate increases faster than expected, the market will be forced to consider whether this is the first in a series of interest-rate increases”. In contrast, he believed that a military posture should not have a significant impact on the expectations of the September hike. Kim Xian