2026-01-01 13:25:51

The US dollar's performance this year has been quite interesting — it has reversed its previous upward trend. According to Wall Street data, the dollar has fallen nearly 7%, marking the largest annual decline since 2017.

The euro against the dollar has performed even better, rising over 13%, which is also one of the best results in recent years. The British pound hasn't been idle either, increasing about 8%, also marking the largest gain since 2017.

Why is this happening? Policy uncertainty is a major reason, causing US dollar investors to reconsider their positions. Overseas funds are beginning to hedge against dollar assets, and concerns about debt sustainability along with expectations of rate cuts are also putting pressure on the dollar.

Looking ahead to 2026, Wall Street's forecasts are even more interesting — the dollar may continue to be under pressure. Goldman Sachs analysts believe that over the next 12 months, the dollar will depreciate by an average of 2.8% against major global currencies. As Germany increases spending on infrastructure and defense, the euro against the dollar could even rise another 6.6%. This is a signal that those holding dollar assets and involved in cross-asset allocation should take seriously.

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SnapshotBot

· 7h ago

The recent move in the dollar is truly outrageous, the biggest drop in seven years. It feels like the US's credibility is collapsing. Want to try switching to euros?

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SneakyFlashloan

· 7h ago

I didn't expect the recent decline of the US dollar; I thought it would keep rising. The euro and British pound are soaring directly, and I feel it's time to readjust my holdings. --- The rate cut expectations have been quite aggressive this time; dollar bears should be celebrating now. --- But on the other hand, will the dollar really continue to plummet? Is Goldman Sachs' prediction reliable... --- The euro has already risen to this level, which is a bit outrageous. What if policies shift? Those chasing the high should be cautious. --- Germany increasing military spending and infrastructure—this move seems to have a story behind it. Hedgers with large dollar positions are probably feeling the pressure too. --- A 7% decline isn't small, but the pressure on leveraged positions is really terrifying. --- The debt sustainability issue has come up again. The Federal Reserve should have dealt with this a long time ago... --- Continuing to be under pressure in 2026? Should I now completely exit the dollar?

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RektRecorder

· 7h ago

The dollar has really rallied this time, even the euro has turned around and sung the song of the serfs... It should have been like this a long time ago, the Federal Reserve has played out.

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BlockchainBard

· 7h ago

The dollar has really dropped this time, the worst decline in ten years... Feels like the Federal Reserve didn't play this move well.

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ContractBugHunter

· 7h ago

The US dollar is really panicking this time, and the euro is taking off... I need to quickly adjust my portfolio.

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PhantomHunter

· 7h ago

The recent decline of the US dollar is truly remarkable. It feels like the days are not easy for the US. The euro has soared by 13%. I wonder if those holding US dollars are feeling anxious?

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