Is the US Dollar poised for another significant drop? Experts at Eurizon SLJ Capital, including Stephen Jen, are predicting a potential 10%-15% decline in the US dollar by mid-2025. This forecast stems from bets that interest rates have peaked, and the Federal Reserve will likely cut interest rates as inflation continues to cool. The dollar is vulnerable to sliding another 10% to 15% in the next year and a half as cooling inflation allows the Federal Reserve to cut interest rates.

The dollar’s rebound faces a key test as traders assess Fed expectations, geopolitics, and slowing spending. With inflation cooling and rate-cut bets rising, markets eye potential further weakening. While The U.S. dollar rose to a two-week high on Wednesday as investors continued to take profits on short dollar positioning amassed toward the end of last year, this upward trend might be short-lived if Eurizon’s analysis proves accurate.

Eurizon’s Jen Says Dollar May Fall Another 15% on Peak Rate Bets. World One News Page highlights this potential shift. The key driver behind this forecast is the belief that “With so much Fed tightening already in place, the risks to inflation in the U.S. and the world are heavily biased to the downside.” This implies that aggressive rate hikes are no longer necessary, paving the way for rate cuts and a weaker dollar.

However, it's crucial to consider various factors. The dollar’s trajectory will depend on the interplay of Fed policy, geopolitical events, and consumer spending. Keep an eye on these indicators to assess the validity of predictions regarding a further 10%-15% drop in the US dollar.