As the Fed is likely to announce an interest rate cut this week, financial markets are focusing on this significant decision. HSBC's currency strategy expert Paul Mackel offered in-depth insights on this matter. He believes that the dollar may experience a short-term rise after the announcement of the interest rate cut, unless the Fed clearly indicates that more rate cuts are to come in the future.

Markel pointed out that the current market expectations for interest rate cuts are already quite high, and the Fed needs to meet very strict conditions to further raise these expectations. According to data from the London Stock Exchange Group, the market expects that by the end of 2026, the cumulative interest rate cuts by the Fed will reach approximately 140 basis points.

Against this backdrop of expectations, the dollar may experience a brief rise after the Fed's policy statement is released on Wednesday. However, Markel also cautions investors that any gains in the dollar could be temporary, especially if employment data continues to be weak, considering the prospect of accelerated rate cuts in the future.

The Fed's decision this time will not only affect short-term market trends but may also have a far-reaching impact on the global economic landscape. Investors and policymakers will closely watch the Fed's statements and the subsequent market reactions. During this period of uncertainty, flexible investment strategies and deep market insights will become particularly important.