SocGen Predicts US Dollar Rebound Amid Fed Rate Cut Volatility
The US dollar has plunged to an 8-week low as Federal Reserve rate cuts and loose fiscal policy batter the currency. Wall Street giants Goldman Sachs and Morgan Stanley forecast further declines, but Société Générale offers a contrarian view.
"The dollar may be in its final stages of downturn," says SocGen's FX strategist Kit Juckes. He attributes recent weakness to anticipated Fed easing and inflated equity valuations, but sees a sharp rebound emerging by mid-2026 as economic fundamentals improve.
Currency markets remain volatile as traders weigh competing narratives. While most analysts focus on near-term dollar weakness, SocGen's longer-term recovery thesis suggests strategic opportunities may emerge for forex and crypto traders positioning beyond the current cycle.
