<div id="readability-page-1"><img width="1152" height="720" src="https://imageproxy.pbkrs.com/https://invezz-wp-media.lon1.digitaloceanspaces.com/2025/11/20251104_091203_iuwCg.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" original-src="https://imageproxy.pbkrs.com/https://invezz-wp-media.lon1.digitaloceanspaces.com/2025/11/20251104_091203_iuwCg.png"/>The US dollar moved higher on Monday after weekend talks between Washington and Tehran failed to produce an agreement to end the ongoing conflict.According to CNBC, the greenback gained 0.3% against the euro, trading at $1.169, and rose 0.25% against the British pound to $1.342.The uptick in the currency came after peace negotiations broke down, followed by a statement from Donald Trump indicating that the US would initiate a blockade of all maritime traffic entering and exiting Iranian ports.The announcement added to geopolitical uncertainty and provided modest support to the dollar.Despite the escalation, investor demand for the dollar has remained measured since the beginning of the Iran conflict.However, the currency has still posted gains of around 2% against a basket of major peers in March.<h2>Market dynamics shaped by oil and financial conditions</h2>Recent developments in global markets have created headwinds for other currencies.Higher oil prices, a firmer US dollar, and tighter US financial conditions have collectively pressured foreign exchange markets.The US dollar’s relative strength during the conflict has been largely attributed to the country’s self-sufficiency in energy production.In contrast, economies such as the United Kingdom and the Eurozone remain more vulnerable to rising oil and gas prices due to their heavy reliance on imports.This divergence has amplified the dollar’s appeal, particularly during periods of heightened geopolitical risk.<h2>HSBC analysts remain cautious on the USD outlook</h2>Analysts at HSBC highlighted the complexity of the current environment in a note issued on Friday.While acknowledging the temptation to adjust forecasts in favour of a stronger dollar, they expressed hesitation.According to CNBC, he wrote, &#34;Embracing a stronger USD into our forecasts is tempting.&#34;He also added that they were &#34;reluctant&#34; to make such a shift and instead expect the greenback to weaken over time.The analysts pointed to two primary reasons underpinning their outlook. First, referencing recent remarks by Federal Reserve Chair Jerome Powell, they stated, &#34;When there is a lack of visibility, it is prudent to slow down rather than fully change direction.&#34;&#34;Second, since the Fed is not in a hiking cycle nor has turned outright hawkish, there are underlying constraints working against the broad USD,&#34; they added.<h2>Gold under pressure amid shifting safe-haven demand</h2>While the dollar has seen modest gains, other traditional safe-haven assets have not performed as strongly.Gold has declined by around 10% from its all-time high since the United States and Israel began strikes on Iran on February 28.HSBC analysts suggested that the precious metal’s upward trajectory could resume, but only under specific conditions.They indicated that a sustained recovery in gold prices would likely require a cessation of hostilities, the full reopening of the Strait of Hormuz, and a stabilisation in oil prices at more consistent levels.Until then, market participants are expected to remain focused on geopolitical developments and their broader impact on currencies and commodities.The post Why does HSBC expect the dollar to weaken despite gains? appeared first on Invezz</div>

HSBC

HSBA

GOLD

HSBC analysts expect the US dollar to weaken despite recent gains, citing geopolitical uncertainty and a lack of visibility in the market. The dollar rose against the euro and British pound following failed peace talks between the US and Iran, but HSBC remains cautious, noting that the Federal Reserve is not in a hiking cycle. They highlight that the dollar's strength is partly due to the US's energy self-sufficiency, contrasting with the vulnerability of the UK and Eurozone to rising oil prices. Gold prices have also declined amid shifting safe-haven demand.

- The US dollar rose on Monday as failed negotiations between Washington and Tehran added geopolitical uncertainty, leading to a 0.3% gain against the euro and a 0.25% increase against the British pound.  
- Despite these gains, investor demand has been measured, with the dollar gaining approximately 2% against major peers in March amid rising oil prices and tighter US financial conditions.  
- HSBC analysts remain cautious about the dollar’s future, anticipating a potential weakness due to the Federal Reserve's non-hawkish stance and the need for clearer visibility in monetary policy.

Invezz

HSBC Holdings Plc

Gold.com

HSBC HOLDINGS

Kinross Gold

Agnico Eagle Mines

ZHONGJIN GOLD

SD-GOLD

Newmont

Invesco Db Precious Metals ETF

EFUND GOLD MI ETF

Abrdn Precious Metals Basket ETF Trust

GLOBAL X Gold Explorers

Roundhill Gold Miners Weeklypay ETF

VanEck Vectors Gold Miners UCITS ETF

Direxion Daily Gold Miners Bull 2X

EFUND GOLD MI-U

Wtree Bbg Usd Bull

Sprott JR Gold Miners ETF

Us Gbl GLD & Met

Direxion Daily Jr Gold Miners Bull 2X

SPDR Gold Minishares

Invesco DB US Dollar Index Bullish Fund

Sprott GLD Miners Etf

EFUND GOLD MI-R

Microsectors Gold Miners 3x Leveraged ETN

VanEck Gold Miners ETF

HSBC Holdings plc ADRhedged

SPDR Gold Shares

iShares MSCI Global Gold Miners

Pro Ultr GLD

ChinaAMC Gold ETF

YieldMax Gold Miners Opt Inc Strgy ETF

VanEck Vectors Junior Gold Miners UCITS ETF

iShares Gold Trust

Abrdn Gold ETF Trust

VanEck Junior Gold Miners ETF

Why does HSBC expect the dollar to weaken despite gains?