US Dollar: Strong view intact after FOMC hold – HSBC

FXStreetNov 2, 2026 1:04 PM

View all comments（0）



HSBC’s FX Viewpoint, dated 2 November 2026, reviews the latest FOMC decision and its implications for the Dollar. The Federal Reserve kept rates at 3.75-4.00% but signalled that a December hike remains possible as US economic activity is described as strong and inflation elevated. HSBC maintains its strong USD view into 2027, while warning that the path may be volatile.

Fed hold sustains Dollar strength

"At its 27-28 October meeting, the FOMC voted 10 to 2 to hold the federal funds target range steady at 3.75-4.00%, in line with expectations."

"The accompanying statement left the door open for a December hike."

"The USD is likely to face a bumpy road into year-end."

"We have maintained our strong USD view for several months, supported by US economic resilience, a hawkish Fed, and challenges facing other major currencies."

"That view remains intact as we head into 2027, although the path is unlikely to be smooth."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)

Disclaimer: The information provided on this website is for educational and informational purposes only and should not be considered financial or investment advice.

Comments (0)

Click the $ button, enter the symbol, and select to link a stock, ETF, or other ticker.

Commenting Guidelines

Recommended Articles

SpaceX Stock Price Forecast: Morgan Stanley Maintains Overweight Rating, Sets $300 Price Target, Sees Over 100% Upside

TradingKey - Recently, SpaceX shares (SPCX) entered a phase of volatile recovery following a rapid pullback. As of November 12 Eastern Time, SPCX edged up 0.14% to close at $139.94, reaching an intraday high of $147.60 with a trading volume of approximately 95.96 million shares; in the latest overnight trading, it briefly rebounded above $141. Compared to its interim low of $120.39 on November 5, the stock has bounced back by approximately 16%, but it still has more than 100% upside potential toward the $300 price target set by JPMorgan.

Nasdaq Extends Drop by 0.91% as Tech Stocks Lead Declines, AMD Falls Nearly 9%, Nvidia Drops 2%

On Friday, November 13, Eastern Time, U.S. stocks closed mixed as Nvidia extended its decline, dragging down the Nasdaq and the S&P 500, while the Dow finished slightly higher. A lower-than-expected month-over-month increase in the U.S. October Producer Price Index (PPI) initially lifted equities in early trading, but the year-over-year gain reached its highest level since November 2022, keeping inflationary pressures and the Federal Reserve's rate hike outlook in focus.

AMD 2027 Revenue Projected to Grow Over 80%, Stock May Challenge $700 in Next 12 Months

TradingKey - AMD's (AMD) growth expectations for 2027 have risen significantly. The company recently disclosed that customers have expanded deployment plans for EPYC processors and Instinct accelerators, and AMD has secured additional critical supply, projecting that server revenue will double year-over-year in 2027.

US October PPI Rises 6.5%, Philadelphia Semiconductor Index Plunges 5%, AMD Tumbles as Much as 10%

U.S. stocks fell following the release of the U.S. October Producer Price Index (PPI). Although the month-over-month increase came in below expectations, the year-over-year rise still hit a near four-year high. Coupled with hawkish remarks from Federal Reserve officials, markets continue to assess the size of a December rate hike and the potential for further policy tightening.

Gold Price Forecast: Gold Tumbles Below $3,900 as Trump Says No Need for Iran Deal; Can October PPI Spur a Rebound?

TradingKey - As of the Asian session on Friday (November 13), gold prices (XAUUSD) rebounded intraday following a sharp drop on Thursday, with the latest price trading near $3,910. On Thursday, gold tumbled 2.76% to close at $3,877.41, confirming a breakdown below the $3,900 mark and touching a low of $3,852.27, hitting a fresh nearly one-year low. The decline in gold was primarily driven by renewed Middle East tensions pushing up international oil prices, coupled with persistently elevated U.S. inflationary pressures, which continue to weigh on gold's short-term trajectory.

Featured Tools