According to Golden Finance, HSBC believes the dollar could rise if the Fed cuts interest rates by 25 basis points on Wednesday and signals further gradual easing. Paul Mackel, HSBC’s FX strategist, said in a report that it was still difficult to say whether the Fed would cut by 25 basis points or 50 basis points. “HSBC Economics expects the Fed to start with a 25 basis point cut and signal further easing ahead, but not by much,” Mackel wrote. He said this scenario would put the dollar “on better footing,” especially considering the market’s high pricing for rate cuts and signs of excessive dollar short positions.