According to a report from Jinshi Data, Danske Bank expects that with the Fed resuming 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 indicate that the impact of Trump's tariff policy on the economy will begin to manifest from next month. The Fed is expected to remain on hold on Wednesday, but it is unlikely to commit to rate cuts at this stage.