According to reports from 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 rates by 125 basis points.
Danske Bank analysts stated that the impact of Trump's tariff policy on the economy will begin to show next month. The Fed is expected to hold steady on Wednesday, but it is unlikely to commit to interest rate cuts at this stage.