HSBC's main takeaway from its most recent....>

DOLLAR: HSBC's main takeaway from its most recent USD survey & positioning

analysis is "that there is still plenty to play for in FX. The bears may be

coming out of hibernation again but they have not fully awoken yet:

- Market participants are leaning towards a weaker USD, but it is far from a

convincing majority.

- Cyclical factors are seen as the main driver likely to cause USD weakness. We

view this as the soft form of the USD bear argument.

- 25% of respondents are bullish on the USD. We were surprised by this given how

few interactions we have had recently with market participants who expect USD

appreciation."

- HSBC themselves have "little conviction in an overwhelming USD trend. For now,

we are happy to take a neutral view on the USD. Our conviction for

outperformance lies in currencies with better fiscal dynamics and less reliance

on central bank balance sheet expansion such as the AUD, NOK, NZD and SEK, while

we would steer clear of those at the other end of the spectrum such as GBP, EUR

and CAD."