US Dollar Faces Volatility in 2026 with Potential Reversal
The US dollar remains under pressure from macroeconomic headwinds, with 2025 proving particularly challenging due to Trump-era tariff policies. Analysts now project further downside in early 2026, with the DXY index potentially testing 94 levels amid continued volatility.
Market strategists observe a V-shaped formation developing in currency markets, suggesting accelerated depreciation in the coming quarters. The bearish technical structure follows the dollar's failure to break December 2023 lows, as noted by prominent chart analysts.
A paradoxical recovery narrative emerges for mid-2026, where new fiscal stimulus and trade protections could stabilize the currency. '2026 will be the year of the dollar,' market participants suggest, anticipating policy responses to inflation dynamics.
