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FX Trends: As the Fed finally started cutting rates...

25 September 2024

Key takeaways

  • As the Fed began its easing cycle with a 50bp cut, local factors may gain more traction in FX, with the JPY possibly being vulnerable to a delayed BoJ tightening or political developments.
  • Weaker fundamentals could weigh on the EUR and GBP, but perhaps not immediately.
  • With US election risks looming large, the USD may see some support.

Our tactical view

Table of tactical views where a currency pair is referenced (e.g. USD/JPY):An up (⬆) / down (⬇) / sideways (➡) arrow indicates that the first currency quotedin the pair is expected by HSBC Global Research to appreciate/depreciate/track sideways against the second currency quoted over the coming weeks. For example, an up arrow against EUR/USD means that the EUR is expected to appreciate against the USD over the coming weeks. The arrows under the “current” represent our current views, while those under “previous” represent our views in the last month’s report.

Note: ^DXY = US Dollar Index, is an index (or measure) of the value of the USD against major global currencies, including the EUR, JPY, GBP,CAD, SEK and CHF. Source: HSBC

FX Data Snapshot

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