HSBC says watch Trump trade policy, not Powell monetary policy, for direction of the USD ...Middle East

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HSBC says watch Trump trade policy, not Powell monetary policy, for direction of the USD

Via a note from HSBC, a few snippets to consider:

The trajectory of U.S. trade policy is likely to have a greater impact on the U.S. dollar than monetary policy. The Federal Reserve’s March meeting had a neutral outcome, leaving the prevailing bearish sentiment on the dollar intact, especially as U.S. bond yields declined. However, the meeting did not trigger a significant and sustained selloff in the dollar either. The Fed’s continued cautious approach suggests a more measured outlook on interest rates in the short term. HSBC has kept its year-end 2025 forecast for the 10-year U.S. Treasury yield unchanged at 3.50%. There is potential for further declines in U.S. equities.But, some of HSBC’s market sentiment indicators signaling oversold conditions. This article was written by Eamonn Sheridan at www.forexlive.com.

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