Institution: US Dollar Could Fall in 2026 Due to Fed Rate Cut

BlockBeats News, November 27th, Pictet Asset Management strategist Luca Paolini stated that as the economic growth slowdown paves the way for further Fed rate cuts, the US dollar will face a new round of weakness next year. He pointed out that the interest rate differential of the US dollar is significantly narrowing. "We expect the US economy to soften slightly, which will slowly ease inflation pressures." Conversely, economic growth in other parts of the world may improve, especially in Europe and Japan. In addition, the US dollar valuation remains relatively high. Pictet expects that by the end of 2026, the US Dollar Index will drop from the current near 99.55 to 95. (FXStreet)