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2026 FX Outlook

LIVE10 November 2025USD bearish
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USD/USD

The dollar's multi-year premium is set to unwind in 2026. Fed rate cuts, widenin

Bearish

Key Drivers

Fed easing cycle
Twin deficit widening
Global growth recovery
Capital flow rotation
Overvaluation correction

All Firm Targets (Dec '26)

Analysis Summary

The dollar's multi-year premium is set to unwind in 2026. Fed rate cuts, widening twin deficits, improving global growth, and a rotation of capital flows away from US assets should all weigh on the greenback. DXY to 95.0 by year-end.