Analyst: The Federal Reserve may cut rates more than currently priced in by the market, and the US dollar will face further declines this year

According to Odaily, analysts at Mitsubishi UFJ Bank stated in a report that the US dollar will face further declines this year, as the Federal Reserve's rate cuts may exceed current market pricing. Federal Reserve Chairman Powell previously indicated that since April, the number of new jobs added each month may have been overestimated by 60,000. Analysts noted that, based on this situation, the US is actually losing jobs, and with monetary policy remaining relatively tight, "it would be very rare to see the situation improve." They also mentioned that concerns about the Federal Reserve's independence have become a topic amid political pressure for rate cuts. Mitsubishi UFJ Bank expects that by the fourth quarter of 2026, the EUR/USD exchange rate will rise from the current 1.1690 to 1.24. (Golden Ten Data)