MUFG

2026 FX Outlook: Post-Peak USD World

LIVE19 December 2025USD bearish

Overview Forecasts Trades Currencies Scenarios Technicals Volatility EM Strategy Macro Quant

Back to Currencies

USD/USD

Name: Investment Bank FX Research Directory
Creator: FX Bank Forecast
License: https://fxbankforecast.com/terms
Keywords: bank FX research, investment bank reports, FX strategy, institutional research directory, bank forecasts

We expect the USD to decline approximately 5% on a DXY basis in 2026, reaching 9

Bearish

Key Drivers

Twin deficit expansion

Fed easing cycle

Growth convergence

Portfolio rebalancing

De-dollarization trends

All Firm Targets (Dec '26)

Analysis Summary

We expect the USD to decline approximately 5% on a DXY basis in 2026, reaching 95.0 by Q4. The post-peak USD world is driven by narrowing US growth exceptionalism, expanding twin deficits, and Fed easing. Unlike Morgan Stanley, we see steady dollar weakness without an H2 recovery.

View all currencies across firms

FX BANK FORECAST · COVERAGE

Institutional FX coverage in your inbox

Aggregated year-end forecasts, scenario shifts, and curated analyst notes from eight institutional desks. No promotion.