0532 GMT - The key for the U.S. dollar is likely to rest more on how U.S. trade policy evolves, rather than monetary policy, say economists at HSBC Global Research. "For the USD, the March FOMC was sufficiently neutral not to challenge the prevailing USD bearish mood, especially with U.S. yields falling," they say in a note. However, that wasn't enough to prompt sustained USD selling either, they say. Following a strong start this year for Treasurys, the Fed's continued wait-and-see stance warrants a more cautious short-term view on yields, they say, and maintain their end-2025 10-year Treasury forecast unchanged at 3.50%. The economists see potential for a further unwinding in U.S. equities, with sentiment in some of the bank's indicators flashing oversold levels. (monica.gupta@wsj.com)

(END) Dow Jones Newswires

March 20, 2025 01:33 ET (05:33 GMT)

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