U.S. strategists say the dollar faces more volatility in 2026 after a weak 2025 driven by Trump-era tariff policy and heavy government spending tied to the “One Big Beautiful Bill.” They note the currency formed a V-shaped pattern and that the DXY index could slip below 95, with some calls of a drop toward 94.
In a tweet by Gert van Lagen, he wrote: “The #DXY [1W] appears poised to continue its bearish trajectory after failing to break the December 2023 low for two consecutive weeks. The index is about to break the neckline of the big double top, targeting sub-95.”
Other strategists say a reversal could come mid-2026 as new government spending and tariff dynamics shift; this view was shared in a tweet by Financhle, which stated: “2026 will be the year of the dollar. $DXY is pushing up against its 200dma, and I believe a Supreme Court ruling against tariffs could give it the boost it needs to break out and push higher to 100.”
Citing market commentary, Jane Foley of Rabobank told Reuters that the dollar may trade in wide, choppy ranges into 2026 rather than collapse, noting policymakers’ views on tariffs and revised U.S. growth forecasts. Her observation appears in a Reuters post that summarized the outlook.
