1419 GMT - The Federal Reserve's decision Wednesday might not give the dollar a fresh catalyst to rise unless it unexpectedly raises interest rates, HSBC's Paul Mackel says in a note. Fed Chair Kevin Warsh has acknowledged inflation is above target and sounded a commitment to price stability. If Wednesday's meeting only matches these views, the dollar is unlikely to rise much given markets are already positioned for rate rises later this year, he says. "However, we are also cognisant of some toying with the idea of the Fed hiking surprisingly, just like it did suddenly in February 1994." This would boost the dollar if markets welcomed it as a prudent step, he says. The DXY dollar index falls 0.1% to 101.419. (renae.dyer@wsj.com)

(END) Dow Jones Newswires

July 27, 2026 10:19 ET (14:19 GMT)

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