According to a report by Jinshi Data, Danske Bank expects that as the Federal Reserve resumes interest rate cuts, the dollar will be pressured, and the euro-to-dollar exchange rate will rise to 1.22 within 12 months. The bank predicts that by June 2026, the U.S. will have cut interest rates by 125 basis points.
Danske Bank analysts state that the impact of Trump's tariff policy on the economy will begin to manifest next month. The Federal Reserve is expected to remain unchanged on Wednesday, but it is unlikely to commit to interest rate cuts at this stage.