The dollar decline accelerates – what awaits the currency in the coming year?

Over the past week, the US dollar has experienced significant weakening, recording the worst periodic loss since mid-summer. According to Golden Ten Data analysis, the current situation is worsening due to the US markets being closed for the holiday – with reduced participant activity, increased volatility is emerging in the currency markets.

The position of the US dollar has undergone substantial changes compared to the peak recorded seven days ago. Analysts, including Brent Donnelly from Spectra Markets, note that the investment sector is already preparing to strategize for the upcoming year.

The outlook for the dollar’s decline could deepen depending on the direction of the Federal Reserve’s policy. Donnelly emphasizes that traditionally hawkish strategies toward the currency will lose significance in 2026. A particularly important factor is the potential change in the Fed chair position – nominations of advocates for easing monetary policy, such as White House advisor Hasset, could further weaken the dollar’s position in global markets.

The market is closely watching every signal from the Federal Reserve, knowing that decisions regarding interest rates will be crucial for future currency trends.