Analyst: Fed Rate Cuts May Exceed Current Market Pricing, Dollar Faces Further Decline This Year

Odaily According to a report by analysts at MUFG Bank, the US dollar faces further declines this year as the Federal Reserve's rate cuts may exceed current market pricing. Fed Chair Powell previously stated that monthly job gains since April may have been overestimated by 60,000. Analysts noted that based on this situation, the US is actually losing jobs, and "it would be very rare to see an improvement in the situation" while monetary policy remains tight. They also mentioned that concerns over the Fed's independence have become a theme amid political pressure for rate cuts. MUFG Bank expects the EUR/USD exchange rate to rise from the current 1.1690 to 1.24 by the fourth quarter of 2026. (Jin10)