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."
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