💵📉 MUFG Warns the Dollar Could Slide Further as Fed Cuts May Surprise Markets
Analysts at Mitsubishi UFJ Financial Group (MUFG) say the U.S. dollar may weaken further this year, arguing that Federal Reserve rate cuts could end up deeper than markets are pricing in, according to ChainCatcher.
They point to comments from Fed Chair Jerome Powell, noting that since April, reported monthly job gains may have been overstated by about 6,000 jobs, suggesting the labor picture could be softer than it looks. With monetary policy still tight, the analysts expect meaningful improvement to be limited.
📌 Their forecast: MUFG sees EUR/USD rising from ~1.169 to 1.24 by Q4 2026.$ZKC
