Amundi downgraded its stance on the US dollar to "cautious," anticipating further interest rate cuts from the Federal Reserve.
TL;DR
Amundi analysts downgraded the US dollar outlook to 'cautious,' citing structural challenges and expectations for two more Fed rate cuts this year, influenced by potential policy shifts under Trump.
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[Amundi Downgrades Dollar Stance to "Cautious," Expects Further Fed Rate Cuts] According to Mars Finance, citing Jinshi, Amundi analysts stated in a report that the dollar is facing structural headwinds this year and expects the Fed to potentially cut rates twice more this year. Analysts slightly raised their 2026 growth forecast from 1.9% to 2%, but the overall narrative remains below potential growth. Uncertainty regarding the next Fed chairman persists, and given President Trump's push for loose monetary policy, they will clearly favor rate cuts.