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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DegenWhisperer
· 01-04 13:25
The recent decline of the US dollar is quite sharp. Friends holding positions should be concerned...
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The 13% increase of the euro is truly impressive. I like this sense of rhythm.
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As soon as rate cut expectations emerged, the dollar started to cry. It's hilarious.
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Goldman Sachs says it could fall another 2.8%. I think, where does it end?
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The dollar bear market still has to continue. Is it time to switch currencies?
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Policy uncertainty is really a money harvesting machine.
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A 6.6% upside potential for the euro? Those numbers are quite tempting.
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The current mindset of dollar asset holders is probably very complicated, haha.
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Debt concerns plus rate cuts mean a double whammy for the dollar.
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Will the dollar continue to be beaten in 2026? I can't take this bet.
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AirdropChaser
· 01-04 13:23
I saw this wave of USD decline coming a long time ago. The key is that the euro's rally is also too fierce, soaring 13% directly.
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MidnightGenesis
· 01-04 12:44
Late at night, I checked the on-chain data, and the pace of this USD decline seems a bit off... Monitoring shows that overseas big players are systematically hedging. Notably, the contract deployment time on the euro side perfectly coincides with this rally, as expected.
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MetaverseMigrant
· 01-02 02:17
The US dollar is really crashing, and the euro is soaring. Now those holding USD should be worried.
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SnapshotBot
· 01-01 13:55
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
· 01-01 13:55
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.
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The rate cut expectations have been quite aggressive this time; dollar bears should be celebrating now.
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But on the other hand, will the dollar really continue to plummet? Is Goldman Sachs' prediction reliable...
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The euro has already risen to this level, which is a bit outrageous. What if policies shift? Those chasing the high should be cautious.
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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.
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A 7% decline isn't small, but the pressure on leveraged positions is really terrifying.
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The debt sustainability issue has come up again. The Federal Reserve should have dealt with this a long time ago...
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Continuing to be under pressure in 2026? Should I now completely exit the dollar?
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RektRecorder
· 01-01 13:55
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
· 01-01 13:43
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
· 01-01 13:36
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
· 01-01 13:36
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?
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.