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FX Navigator (May): Not the time to chase tactical trends

18 May 2026

Key takeaways

  • Middle East geopolitics appear stuck in a stalemate…
  • …that makes it unlikely for tactical FX trend to be sustained for long
  • The USD may move sideways until the stalemate is broken, while the AUD could strengthen

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 27 April 2026
Source: HSBC, Bloomberg

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