Daiwa predicts that the US dollar index may fall by 9% next year, offering opportunities for the Euro, Yen, and others.

According to the Zhitong Finance and Economics APP, the latest research report from Morgan Stanley pointed out that under the dual pressure of the Federal Reserve's interest rate cuts and a slowdown in global economic growth, the US Dollar Index (DXY) may initiate a deep adjustment. The report, released by strategist Matthew Hornbach and his team on May 31, predicts that by mid-2026, the US Dollar Index will fall by about 9% from its current level, dropping to 91 points, reaching a new low since the outbreak of the COVID-19 pandemic in 2020. This forecast resonates with the market's reassessment of the outlook for the US dollar, especially against the backdrop of the global rethink of the US dollar's status caused by the Trump administration's trade policies. The US Dollar Index has already dropped by nearly 10% from its high point in February 2025.