Interpretation of Political Bias for Fed May Determine U.S. Dollar Moves -- Market Talk

Dow Jones

Aug 12, 2025

0537 GMT - The direction of the U.S. dollar may depend on the market's interpretation of political bias for the Fed, says HSBC's Paul Mackel in an email. There is uncertainty regarding the Fed's next steps on monetary policy and around the next Fed Chair, HSBC's global head of forex research says. If the Fed can cut rates gradually, this would support HSBC's central case for the USD to weaken gradually versus many currencies. However, if the market becomes concerned about political interference for the Fed, the USD could behave differently, depending on how cross-asset volatility shifts and long-term U.S. bond yields move. In a problematic situation, the USD may initially weaken versus core currencies such as euro, yen, Swiss franc and yuan, he adds. (monica.gupta@wsj.com)

(END) Dow Jones Newswires

August 12, 2025 01:37 ET (05:37 GMT)

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There is uncertainty regarding the Fed's next steps on monetary policy and around the next Fed Chair, HSBC's global head of forex research says. If the Fed can cut rates gradually, this would support HSBC's central case for the USD to weaken gradually versus many currencies. However, if the market becomes concerned about political interference for the Fed, the USD could behave differently, depending on how cross-asset volatility shifts and long-term U.S. bond yields move. In a problematic situation, the USD may initially weaken versus core currencies such as euro, yen, Swiss franc and yuan, he adds. (monica.gupta@wsj.com) \n</p>\n<pre>\n \n</pre>\n<p>\n  (END) Dow Jones Newswires\n</p>\n<p>\n  August 12, 2025 01:37 ET (05:37 GMT)\n</p>\n<p>\n  Copyright (c) 2025 Dow Jones &amp; Company, Inc.\n</p>\n</font>","source":null,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Interpretation of Political Bias for Fed May Determine U.S. Dollar Moves -- Market Talk</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nInterpretation of Political Bias for Fed May Determine U.S. Dollar Moves -- Market Talk\n</h2>\n\n<h4 class=\"meta\">\n\n\n<div class=\"head\" \">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">Dow Jones </p>\n<p class=\"h-time\">2025-08-12 13:37</p>\n</div>\n\n</div>\n\n\n</h4>\n\n</header>\n<article>\n<font class=\"NormalMinus1\" face=\"Arial\">\n<p>\n     0537 GMT - The direction of the U.S. dollar may depend on the market's interpretation of political bias for the Fed, says <a href=\"https://laohu8.com/S/HSBC\">HSBC</a>'s Paul Mackel in an email. There is uncertainty regarding the Fed's next steps on monetary policy and around the next Fed Chair, HSBC's global head of forex research says. If the Fed can cut rates gradually, this would support HSBC's central case for the USD to weaken gradually versus many currencies. However, if the market becomes concerned about political interference for the Fed, the USD could behave differently, depending on how cross-asset volatility shifts and long-term U.S. bond yields move. In a problematic situation, the USD may initially weaken versus core currencies such as euro, yen, Swiss franc and yuan, he adds. (monica.gupta@wsj.com) \n</p>\n<pre>\n \n</pre>\n<p>\n  (END) Dow Jones Newswires\n</p>\n<p>\n  August 12, 2025 01:37 ET (05:37 GMT)\n</p>\n<p>\n  Copyright (c) 2025 Dow Jones &amp; Company, Inc.\n</p>\n</font>\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"LU0516422440.USD","symbol_name":"FULLERTON LUX FUNDS - ASIA FOCUS EQUITIES \"A\" (USD) ACC","start_time":0,"source_url":"https://dowjonesnews.com/newdjn/logon.aspx?AL=N","article_id":"2558157506","we_media_id":"106","thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2558157506","pubTimestamp":1754977020,"columns":[],"sourceInfo":null,"weMediaInfo":{"media_name":"Dow Jones","introduction":"Dow Jones publishes the world’s most trusted business news and financial information in a variety of media.","home_visible":0,"id":"106","head_image":"https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99"},"summary":"0537 GMT - The direction of the U.S. dollar may depend on the market's interpretation of political bias for the Fed, says HSBC's Paul Mackel in an email. There is uncertainty regarding the Fed's next steps on monetary policy and around the next Fed Chair, HSBC's global head of forex research says. If the Fed can cut rates gradually, this would support HSBC's central case for the USD to weaken gradually versus many currencies. However, if the market becomes concerned about political interference for the Fed, the USD could behave differently, depending on how cross-asset volatility shifts and long-term U.S. bond yields move. In a problematic situation, the USD may initially weaken versus core currencies such as euro, yen, Swiss franc and yuan, he adds. 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There is uncertainty regarding the Fed's next steps on monetary policy and around the next Fed Chair, HSBC's global head of forex research says. If the Fed can cut rates gradually, this would support HSBC's central case for the USD to weaken gradually versus many currencies. However, if the market becomes concerned about political interference for the Fed, the USD could behave differently, depending on how cross-asset volatility shifts and long-term U.S. bond yields move. In a problematic situation, the USD may initially weaken versus core currencies such as euro, yen, Swiss franc and yuan, he adds. (monica.gupta@wsj.com) \n\n\n \n\n\n  (END) Dow Jones Newswires\n\n\n  August 12, 2025 01:37 ET (05:37 GMT)\n\n\n  Copyright (c) 2025 Dow Jones & Company, Inc.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0,"need_auth":true,"code":"91000000","status":"200"}}}