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FX Navigator (Sep): USD tested by structural drivers

24 August 2026

Key takeaways

  • The FX market is again testing the USD on the basis of structural drivers, but cyclical factors have also been relevant.
  • We look for USD consolidation at these lower levels, but this hinges on US policymakers regaining market confidence.
  • Apart from renewed JPY weakness, most of core G10 FX may range sideways.

Our tactical view

^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

HSBC Positioning Indices

Note: Priced as of market close 21 August 2026

Source: HSBC, Bloomberg

Note: *Priced as at 18:58 HKT on 21 August 2026

Source: HSBC, Bloomberg

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