US Dollar on ‘Weakening Trajectory’ Through 2026, Says Rabobank’s Foley

According to Jane Foley, Head of FX Strategy at Rabobank, the US Dollar is expected to embark on a sustained weakening trend that could last through 2026. This outlook is primarily driven by the belief that the Federal Reserve will likely cut interest rates more aggressively than other major central banks, making the dollar less attractive for carry trades and investment. Additionally, a potential global economic recovery could shift investor preference towards higher-growth, riskier assets outside the US. The development arrives against a backdrop of shifting risk appetite, where investors are reassessing exposure to markets and weighing the second-order impact on adjacent sectors. Investors are watching the broader tape for follow-through. Live pricing was not available at the time of writing, but positioning data and order-book signals will shape the next session. Positioning across funds, options skew and credit spreads typically respond first; equity price action lags but tends to confirm the direction once volume returns. Readers should treat the immediate move as a sentiment proxy rather than a final verdict on fundamentals. For longer-horizon allocators the more important question is whether this changes the trajectory of cash flows, regulation or competitive dynamics. If it does, multiple compression or expansion follows; if it does not, the reaction fades within a few sessions and the prior trend reasserts itself. What to watch next: forthcoming earnings prints, central-bank guidance and any official commentary that either validates or pushes back on the market's interpretation. Reported by Bloomberg and contextualised by the Global Investing