11:01 AM EDT, 06/10/2024 (MT Newswires) -- Federal Reserve officials are likely to reduce the number of interest rate cuts forecast for this year in Wednesday's dot-plot and lift their estimate of the long-run 'neutral rate,' supporting the US dollar, HSBC strategists said in their FX Snap note to clients early Monday.

Noting the Federal Open Market Committee's two-day policy setting rate decision meeting ends after release of May consumer price index figures Wednesday, "the message should be similar to its recent statements. That is, the FOMC needs more confidence that inflation is moving sustainably towards 2 percent," HSBC's strategists said.

"A hawkish tone could also be reflected in the FOMC's dot plot," they added.

The US dollar rose against all currencies in the G10 basket except the New Zealand dollar Monday and had risen against all G10 counterparts except the Japanese yen, Swiss franc and Swedish krona during the week to Monday.