HSBC Currency Zone

Note: ^DXY = US Dollar Index, is an index (or measure) of the value of the USD against major global currencies, including the EUR, JPY, GBP, CAD, SEK and CHF. Source: HSBC

Table of tactical views where a currency pair is referenced (e.g. USD/JPY): An up () / down () / sideways () arrow indicates that the first currency quoted in the pair is expected by HSBC Global Research to appreciate/depreciate/track sideways against the second currency quoted over the coming weeks. For example, an up arrow against EUR/USD means that the EUR is expected to appreciate against the USD over the coming weeks. The arrows under the “current” represent our current views, while those under “previous” represent our views in the last month’s report.

Dovish : Dovish refers to an economic outlook which generally supports low interest rates as a means of encouraging growth within the economy.

Hawkish: Hawkish is typically used to describe monetary policy which favours higher interest rates, and tighter monetary controls to keep inflation in check.

MoM / YoY: Month on month / Year on year.

PMI: Purchasing Managers Index (PMI) is an indicator of economic health of the manufacturing sector (>50 represents expansion vs. the previous month).

IMM data: International Monetary Market (IMM) is a division of the Chicago Mercantile Exchange (CME) that deals with the trading of currencies and interest rate futures and options and the IMM data is part of the Commitments of Traders (COT) reports published by the U.S. Commodity Futures Trading Commission (CFTC). The IMM data provides a breakdown of each Tuesday’s open futures positions on the IMM. Speculative positions are a trader’s non-commercial positions (i.e. not for hedging purposes).

G10: G10 refers to the most heavily traded, liquid currencies in the world: USD, EUR, JPY, GBP, CHF, AUD, NZD, CAD, NOK, and SEK.

Fed / FOMC: Federal Reserve System (US’s Central Bank) / Federal Open Market Committee.

ECB: European Central Bank (Eurozone’s Central Bank).

BoE: Bank of England (UK’s Central Bank).

BoJ : Bank of Japan (Japan’s Central Bank).

BoC: Bank of Canada (Canada’s Central Bank).

RBA: Reserve Bank of Australia (Australia’s Central Bank).

RBNZ: Reserve Bank of New Zealand (New Zealand’s Central Bank).

SNB: Swiss National Bank (Switzerland’s Central Bank).

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Additional disclosures

1. This publication is dated as at 21 October 2024.
2. All market data included in this publication is dated as at close 18 October 2024, unless a different date and/or a specific time of day is indicated in the publication.
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