📉 Is the U.S. Dollar Entering a Long-Term Downtrend? | 2026 Outlook

According to Derek Halpenny, Head of Forex Research at Mitsubishi UFJ, the U.S. dollar has already peaked and is now at the start of a long-term downward cycle.

🔍 Key Highlights:

💵 The U.S. Dollar Index (DXY) could decline by around 5% in 2026

💶 EUR/USD is projected to rise toward 1.24

🏦 The Federal Reserve is expected to deliver 3–4 rate cuts in 2026

🏦 The European Central Bank (ECB) is likely to keep rates unchanged

📌 Main Driver:

👉 Monetary policy divergence — easing by the Fed versus steady policy from the ECB could continue to pressure the dollar.

🚀 What does this mean for crypto & risk assets?

Historically, a weaker dollar has been supportive for Bitcoin, crypto, and global risk assets.

💬 What’s your take?

Do you expect the dollar to weaken further in 2026? Share your thoughts below 👇$USDT