Global currency drop warnings from J.P. Morgan are signaling major shifts ahead, and the J.P. Morgan US dollar forecast shows a 10% decline year-to-date through July 2025. This actually marks the weakest first-half performance since 1980, as J.P. Morgan USD projections reveal continued weakness through 2026. The global currency today scenario reflects mounting pressure on what is the main global currency status, while J.P. Morgan de-dollarization trends are reshaping international finance right now.
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J.P. Morgan Forecasts Global Currency Drop Amid De-Dollarization Trends
The investment bank turned bearish on the J.P. Morgan US dollar for the first time in four years, and this global currency drop outlook extends through 2026. Multiple factors are converging to weaken dollar dominance in global currency today markets right now.
Meera Chandan, co-head of Global FX Strategy at J.P. Morgan, was clear about the fact that:
“We look for more USD weakness this year, predicated on the same combination of cyclical and structural factors that we have been discussing for several months now.”
Policy Shifts Drive Global Currency Drop
The global currency drop stems from US economic moderation along with tariff impacts that create J.P. Morgan de-dollarization pressures. Broad-based tariffs actually amplify the J.P. Morgan USD downtrend, affecting what is the main global currency dynamics right now.
Chandan explained:
“The growth impact of such tariffs will be onerous globally, but the inflation impact will be differentiated — so inflationary for the US and deflationary for the rest of the world (RoW). This should continue to weigh on real policy rates in the US, reducing the attractiveness of the dollar.”
Currency Projections Show Continued Global Currency Drop
J.P. Morgan’s forecasts reveal sustained J.P. Morgan US dollar weakness across major pairs. EUR/USD is predicted to reach 1.19 in September 2025, and it’s climbing to 1.22 by March 2026. GBP/USD projections show the pound reaching 1.37 in September 2025, while USD/JPY weakens to 139 by June 2026.
Source: J.P. Morgan Global Research
The global currency today scenario reflects structural changes beyond typical market cycles, as J.P. Morgan USD analysis shows fiscal dynamics along with policy uncertainty creating headwinds.
De-Dollarization Reshapes Reserve Currency System
The current de-dollarization vision by J.P. Morgan is a reflection of the radical changes that came about as to which currency is the main currency discourse on a global scale. The global commodity playing field is changing as central banks all over the world are diversifying their reserves out of dollar assets speeding the trend of global currency decline that is posing an increasing challenge to decades of dollar dominance at the present moment.
Chandan noted:
“The underlying macro landscape is undergoing a significant shift, which means dislocations could get larger.”
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Such trends indicate that the era of unquestioned dollar supremacy is coming to an end, which is likely to affect not only international trade but also investment flows in the background of a multi-polar and multi-currency world where different currencies serve the role of international reserves.