Mitsubishi UFJ Financial Group predicts the dollar will fall until 2026, while the euro is expected to rise to 1.24 against the dollar.
TL;DR
Mitsubishi UFJ analysts predict the US dollar will continue declining through 2026 due to potential Fed rate cuts and overestimated job growth, while the euro is expected to rise to 1.24 against the dollar.
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According to ChainCatcher, citing Jinshi, analysts at Mitsubishi UFJ Bank point out that the US dollar will face further declines this year as the Federal Reserve's interest rate cuts may exceed market expectations. Federal Reserve Chairman Powell stated that monthly job growth since April may have been overestimated by 6,000. Analysts say the US is actually losing jobs, and with monetary policy remaining tight, any improvement will be very rare. Mitsubishi UFJ predicts that the euro will rise to 1.24 against the dollar from its current level of 1.169 by the fourth quarter of 2026.