ChainCatcher news, according to Jinshi reports, Derek Halpenny, head of foreign exchange research at Mitsubishi UFJ, pointed out that the US dollar may continue to depreciate in 2026, but the decline will be more moderate than this year. He emphasized that the US dollar has peaked and is at the beginning of a multi-year downward cycle. The US Dollar Index is expected to fall by about 5% in 2026, a forecast consistent with the outlook for the euro to rise to 1.24 against the dollar. The main factor driving the weakening of the US dollar lies in monetary policy divergence: the Federal Reserve is expected to implement three to four more interest rate cuts in 2026, while the European Central Bank may keep interest rates unchanged.
