HSBC: The weakness of the US dollar indicates that the market's lack of trust in the dollar continues to persist.

HSBC forex analyst says that interest rate differentials and other traditional factors suggest that the dollar should strengthen. The recent weakness in the dollar indicates that other factors are driving its movement, and there continues to be skepticism in the market towards the dollar. The economic activity, political, and structural factors in the US suggest that the dollar should be weak, although it will not continue to decline for many years. We do not believe that the dollar is undergoing a structural decline, but we understand the risks involved, as well as the factors that could lead to such a decline. It will take time for trust in the dollar to be restored.