The US dollar is currently in a volatile mode, battered heavily by the recent interest rate cuts, driving it to the brink. The experts have now predicted a new pathway for the dollar, with heavyweights like Goldman Sachs and Morgan Stanley predicting a further fall for the US dollar value. Moreover, a new opinion has now emerged, sharing how the US dollar may rebound, nearing its last stage, before it bounces back to reality.
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SocGen Predicts a New US Dollar Recovery Road: Details
In a new post uploaded by Walter Bloomberg, a notable media expert, Soc Gen has published a new theory about the US dollar, stating how the asset can be in its final stages of a downturn. To simplify this further, Soc Gen’s Kit Juckes shared how the American currency may be ending its near-end decline, adding how a possible rebound might be on the cards soon for the USD.
Juckes explained that the USD’s decline stems from Fed rate cuts and easy monetary and fiscal policies. He also noted that the dollar may regain momentum soon. He expects a strong rebound by mid-2026, driven by a sharp improvement in the US economic outlook.
“THE DOLLAR COULD BE IN THE FINAL STAGES OF A DOWNTURN. Societe Generale’s Kit Juckes says the USD may be nearing the end of its decline. Near-term weakness is driven by expected Fed rate cuts, easy monetary and fiscal policies, and concerns over high equity valuations. However, stronger U.S. growth relative to other economies is expected by mid-2026, limiting the depth and duration of rate cuts. The DXY index recently fell 0.5% to an eight-week low of 98.212.”
Contrary Opinions
While Soc Gen believes the US dollar might recover its lost grace sometime soon, experts like Morgan Stanley believe the US dollar may encounter more fluctuations in 2026.
“In its 2026 Investment Strategy Outlook, Morgan Stanley Research notes that the U.S. dollar index. A measure of the greenback’s performance against a basket of currencies of major U.S. trading partners. Should fall from its current level of around 100 to 94 in the second quarter of 2026. The lowest since 2021. A rebound would bring the index back to 100 by the end of next year. With potential for further gains in 2027, a trajectory tied to economic growth, unemployment, and interest rates in the U.S.”
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