Analyst: Fed May Cut Rates More Than Market Currently Prices, Dollar Faces Further Decline This Year

According to Odaily, analysts at Mitsubishi UFJ Bank noted in a report that the US dollar will face further declines this year as the Federal Reserve may cut interest rates more than currently priced in by the market. Fed Chair Jerome Powell previously stated that monthly job growth figures since April may have been overestimated by 60,000. Based on this, analysts argued that the US is actually losing jobs, and it would be "very rare to see an improvement" 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. Mitsubishi UFJ Bank forecasts that the EUR/USD exchange rate will rise from the current 1.1690 to 1.24 by the fourth quarter of 2026. (Jin10)