HSBC said the dollar could rise if the Federal Reserve cuts interest rates by 25 basis points on Wednesday and signals further gradual easing. It's hard to say whether the Fed will cut rates by 25 basis points or 50 basis points, HSBC FX analyst Paul Mackel said in a note. "HSBC Economics expects the Fed to start with a 25 basis point rate cut, while hinting at further easing in the future, but not by much." Mr. Mackel said such a scenario would "move the dollar to a better base", especially given the market's overpricing of rate cuts and signs of excessive dollar short positions.