HSBC: The key to the US dollar lies in US trade policy, not monetary policy

Odaily Planet Daily reports that HSBC global research economists say the key to the dollar's trend may depend more on the evolution of U.S. trade policy than monetary policy. They stated in a report: "For the dollar, the FOMC stance in March was neutral enough not to challenge the general bearish sentiment for the dollar, especially when U.S. Treasury yields are falling." However, they said this is also not enough to prompt continued selling of dollars.

They stated that after a strong start for US Treasuries this year, The Federal Reserve continues to take a wait-and-see attitude, so there is reason to be more cautious about short-term yield and maintain its expectation for 10-year US Treasury yield at 3.50% by end of 2025 unchanged. These economists believe that it is possible for further clearance in U.S stock market as some indicators from this bank show oversold levels.