💥 Dollar Weakness Incoming? Mitsubishi UFJ Predicts a Major Shift 💥
Analysts at Mitsubishi UFJ Bank are flagging a potential decline in the U.S. dollar for 2026, driven by larger-than-expected Fed rate cuts.
📉 Key points:
• Fed Chair Jerome Powell noted that job gains may have been overstated by 6,000/month since April
• Analysts argue the U.S. is actually losing jobs, meaning tight monetary policy may continue to struggle
• As a result, Mitsubishi UFJ forecasts the EUR/USD pair climbing from 1.169 → 1.24 by Q4 2026
⚠️ Market implications:
• A weaker dollar could drive risk-on flows into commodities, crypto, and equities
• Emerging markets could see relief in debt servicing but higher import costs if inflation persists
• Investors should consider FX exposure and hedging strategies
The takeaway: watch the Fed, watch the dollar, and position for volatility ahead.
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