Learn More about Lumida ETF
Powered by LumidaWealth.com
Lumida News
  • Home
  • EarningsNEW
  • News
    • Alt Assets
    • Crypto
    • Equities
    • Macro
    • Markets
    • Real Estate
  • Lifestyle
    • Family Office
    • Health and Longevity
  • Themes
    • Aging & Longevity
    • AI
    • CRE
    • Digital Assets
    • Legacy Brands
    • Nuclear Renaissance
    • Private Credit
  • About Us
No Result
View All Result
Lumida News
  • Home
  • EarningsNEW
  • News
    • Alt Assets
    • Crypto
    • Equities
    • Macro
    • Markets
    • Real Estate
  • Lifestyle
    • Family Office
    • Health and Longevity
  • Themes
    • Aging & Longevity
    • AI
    • CRE
    • Digital Assets
    • Legacy Brands
    • Nuclear Renaissance
    • Private Credit
  • About Us
No Result
View All Result
Lumida News
No Result
View All Result
  • Lumida Wealth
  • Lumida Ledger
  • LUMIDA ETF
  • About Us
Home News Markets

Morgan Stanley Predicts 9% Drop in US Dollar by 2026 Amid Rate Cuts and Slowing Growth

by Team Lumida
June 2, 2025
in Markets
Reading Time: 4 mins read
A A
0
Morgan Stanley Q2 2024 Earnings Summary

"Morgan Stanley Headquarters (48105951892)" by Ajay Suresh from New York, NY, USA is licensed under CC BY 2.0

Share on TelegramShare on TwitterShare on FacebookShare on LinkedinShare on Whatsapp

Key Takeaways:

Powered by lumidawealth.com

  • Morgan Stanley strategists forecast the US Dollar Index will fall 9% to 91 by mid-2026, driven by Federal Reserve rate cuts and slowing economic growth.
  • The euro, yen, and Swiss franc are expected to benefit, with the euro potentially rising to 1.25, the yen strengthening to 130, and the pound advancing to 1.45.
  • The bank also predicts 10-year Treasury yields will reach 4% by the end of 2025, followed by a significant decline next year as the Fed implements 175 basis points of rate cuts.
  • Trump’s trade policies and global rethinking of reliance on the dollar are contributing to bearish sentiment on the greenback.

What Happened?

Morgan Stanley strategists, led by Matthew Hornbach, predict a significant decline in the US Dollar Index, which is expected to drop 9% to 91 by mid-2026. The forecast is based on expectations of Federal Reserve rate cuts totaling 175 basis points and slowing US economic growth.

The dollar has already weakened this year, losing nearly 10% since its February peak, as trade tensions and Trump’s disruptive trade policies weigh on sentiment. The bearish outlook is shared by other analysts, including JPMorgan, who recommend bets on rival currencies like the yen, euro, and Australian dollar.

Morgan Stanley expects the euro to rise from 1.13 to 1.25, the yen to strengthen from 143 to 130 per dollar, and the pound to advance from 1.35 to 1.45, supported by favorable carry returns and lower trade risks in the UK.


Why It Matters?

A weaker dollar has broad implications for global markets, trade, and investment flows. It could benefit US exporters by making American goods more competitive abroad but may also increase the cost of imports, adding to inflationary pressures.

The shift away from the dollar as a global safe haven reflects growing concerns about US fiscal and trade policies, as well as the Federal Reserve’s monetary stance. Rival currencies like the euro, yen, and Swiss franc are poised to gain, potentially reshaping global currency dynamics.

The forecasted decline in Treasury yields next year, driven by aggressive Fed rate cuts, could further pressure the dollar while providing relief to bond markets. However, it also signals concerns about the US economic outlook.


What’s Next?

Investors will closely monitor the Federal Reserve’s policy decisions, particularly the timing and scale of rate cuts, as well as ongoing trade developments under the Trump administration.

Currency markets are likely to see increased volatility as traders position for a weaker dollar and stronger rival currencies. The euro, yen, and pound are expected to attract inflows, while emerging markets may benefit from reduced dollar strength.

The broader implications of a declining dollar, including its impact on global trade and the US’s role as the issuer of the world’s reserve currency, will remain key areas of focus for policymakers and market participants.

Source
Previous Post

AI Models Show Alarming Ability to Evade Human Control, Highlighting Urgent Need for Alignment Research

Next Post

The Four-Day Workweek: A Win-Win for Workers and Companies

Recommended For You

Mars to Invest $2 Billion in U.S. Manufacturing Over Next 18 Months

by Team Lumida
7 hours ago
Mars to Invest $2 Billion in U.S. Manufacturing Over Next 18 Months

Key Takeaways: Powered by lumidawealth.com New Investment: Mars plans to invest an additional $2 billion in its U.S. factories over the next 18 months, building on $6 billion invested...

Read more

Apple to Close Retail Store in China for the First Time Amid Changing Market Conditions

by Team Lumida
11 hours ago
apple logo on blue surface

Key Takeaways: Powered by lumidawealth.com First Store Closure in China: Apple will shut its Parkland Mall store in Dalian City on August 9, marking its first retail store closure...

Read more

Samsung Secures $16.5 Billion Tesla Chip Deal to Revive Foundry Business

by Team Lumida
2 days ago
blue coupe parked beside white wall

Key Takeaways: Powered by lumidawealth.com Massive Contract Win: Samsung Electronics secured a $16.5 billion semiconductor manufacturing deal with Tesla running through 2033, providing a major boost to its struggling...

Read more

LVMH in Talks to Sell Marc Jacobs Brand for Around $1 Billion

by Team Lumida
4 days ago
LVMH in Talks to Sell Marc Jacobs Brand for Around $1 Billion

Key Takeaways: Powered by lumidawealth.com Billion-Dollar Sale: LVMH is in discussions to sell the Marc Jacobs fashion brand for approximately $1 billion, marking another strategic divestiture by the luxury...

Read more

Morgan Stanley Becomes First U.S. Firm to Issue Panda Bond in China

by Team Lumida
4 days ago
Morgan Stanley Q2 2024 Earnings Summary

Key Takeaways: Powered by lumidawealth.com Historic First: Morgan Stanley has issued a 2 billion yuan $279 million) five-year panda bond, marking the first time a U.S. company has tapped...

Read more

T-Mobile Tops Rivals With Subscriber Gains, Raises Outlook

by Team Lumida
5 days ago
T-Mobile Tops Rivals With Subscriber Gains, Raises Outlook

Key Takeaways: Powered by lumidawealth.com Subscriber Growth Beats Expectations: T-Mobile added 830,000 net postpaid wireless phone connections in Q2 (up 7% YoY) and 454,000 net broadband connections (up 12%),...

Read more

Chinese Hackers Exploit Microsoft SharePoint Flaws, Breaching U.S. Nuclear Agency and Dozens More

by Team Lumida
7 days ago
China’s Bold Economic Moves: What You Need to Know Now

Key Takeaways: Powered by lumidawealth.com Widespread Breach: Chinese state-sponsored hackers exploited vulnerabilities in Microsoft SharePoint, breaching over 100 servers across 60 organizations—including the U.S. National Nuclear Security Administration, Education...

Read more

Goldman Sachs: Trump’s Tariffs to Lift Baseline Rate to 15%, Fueling Inflation and Slowing Growth

by Team Lumida
7 days ago
Goldman Predicts US Job Market Shift: Stands by Two Rate Cut Forecast

Key Takeaways: Powered by lumidawealth.com Tariff Hike Expected: Goldman Sachs forecasts the U.S. baseline “reciprocal” tariff rate will rise from 10% to 15%, with a 50% levy on copper...

Read more

Morgan Stanley Faces Expanded Scrutiny Over Client Vetting and Anti-Money-Laundering Controls

by Team Lumida
7 days ago
Morgan Stanley Faces Expanded Scrutiny Over Client Vetting and Anti-Money-Laundering Controls

Key Takeaways: Powered by lumidawealth.com Finra Probe Widens: Wall Street’s self-regulator, Finra, is investigating whether Morgan Stanley properly screened wealth-management and trading clients for money-laundering risks from October 2021...

Read more

AstraZeneca to Invest $50 Billion in U.S. Manufacturing and R&D by 2030 Amid Tariff Threats

by Team Lumida
1 week ago
AstraZeneca to Invest $50 Billion in U.S. Manufacturing and R&D by 2030 Amid Tariff Threats

Key Takeaways: Powered by lumidawealth.com Major U.S. Commitment: AstraZeneca will invest $50 billion in the U.S. by 2030*, including a new manufacturing center in Virginia focused on chronic disease...

Read more
Next Post
The Four-Day Workweek: A Win-Win for Workers and Companies

The Four-Day Workweek: A Win-Win for Workers and Companies

Bitcoin Could Drop to $50K Before a Potential Fed-Driven Rally

DOGE, XRP, SOL Show Signs of Bottoming as Bitcoin Holds $105K Amid Trade Tensions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Related News

Qualcomm Extends Deadline for Alphawave Takeover Decision for Fourth Time

Qualcomm Extends Deadline for Alphawave Takeover Decision for Fourth Time

June 2, 2025
Bosch Expands: $8 Billion Acquisition of Johnson Controls and Hitachi Units

Bosch Expands: $8 Billion Acquisition of Johnson Controls and Hitachi Units

July 23, 2024
black flat screen tv turned on displaying 11

Netflix Binge-Watching Linked to Shorter Lifespan: Here’s How to Mitigate the Risk

June 17, 2024

Subscribe to Lumida Ledger

Browse by Category

  • Lifestyle
    • Family Office
    • Health and Longevity
    • Next Gen Wealth
    • Trust, Tax, and Estate
  • News
    • Alt Assets
    • Crypto
    • Equities
    • Latest
    • Macro
    • Markets
    • Real Estate
  • Research
    • Trackers
  • Themes
    • Aging & Longevity
    • AI
    • Biotech
    • CRE
    • Cybersecurity
    • Digital Assets
    • Legacy Brands
    • Nuclear Renaissance
    • Private Credit
    • Software
Facebook Twitter Instagram Youtube TikTok LinkedIn
Lumida News

Premium insights to help you invest beyond the ordinary. Lumida Wealth Management LLC (‘Lumida”) is an SEC registered investment adviser

CATEGORIES

  • Aging & Longevity
  • AI
  • Alt Assets
  • Biotech
  • CRE
  • Crypto
  • Cybersecurity
  • Digital Assets
  • Equities
  • Family Office
  • Health and Longevity
  • Latest
  • Legacy Brands
  • Lifestyle
  • Macro
  • Markets
  • News
  • Next Gen Wealth
  • Nuclear Renaissance
  • Private Credit
  • Real Estate
  • Software
  • Themes
  • Trackers
  • Trust, Tax, and Estate

BROWSE BY TAG

AI AI chips AI demand Amazon Apple Artificial Intelligence Banking Bitcoin China Commercial Real Estate CPI Crypto Donald Trump EARNINGS ELON MUSK ETF Ethereum Federal Reserve financial services generative AI Goldman Sachs Google India Inflation Interest Rates Investment Strategy Japan Jerome Powell JPMorgan Markets Meta Microsoft Nasdaq Nvidia OpenAI private equity S&P 500 SEC Semiconductor stock market Tech Stocks tesla Trump Wells Fargo Whale Watch

© 2025 Lumida Wealth Management LLC is an SEC registered investment adviser. Privacy Policy. Cookies Policy.
Disclaimer Important Information This site is for informational purposes only. Information presented on this site does not constitute as investment advice.

Lumida Wealth Management LLC (‘Lumida”) is an SEC registered investment adviser. SEC registration does not constitute an endorsement of the firm by the Commission nor does it indicate that the adviser has attained a particular level of skill or ability.

Lumida's website (referred to herein as the "Website") is limited to the dissemination of general information pertaining to its advisory services, together with access to additional investment-related information, publications, and links. Accordingly, the publication of the Website on the Internet should not be construed by any client and/or prospective client Lumida’s solicitation to effect, or attempt to effect transactions in securities, or the rendering of personalized investment advice for compensation, over the Internet.

Any subsequent, direct communication by Lumida with a prospective client will be conducted by a representative that is either registered or qualifies for an exemption or exclusion from registration in the state where the prospective client resides.

‍Lead Capture Forms: By submitting your contact information in the forms on this site, you are not obligated to invest in Lumida's product or services.
‍Address: Lumida Wealth Management, 25 W 39th Street Suite 700, New York, NY 10018

No Result
View All Result
  • Home
  • Earnings
  • News
    • Alt Assets
    • Crypto
    • Equities
    • Macro
    • Markets
    • Real Estate
  • Lifestyle
    • Family Office
    • Health and Longevity
  • Themes
    • Aging & Longevity
    • AI
    • CRE
    • Digital Assets
    • Legacy Brands
    • Nuclear Renaissance
    • Private Credit
  • About Us

© 2025 Lumida Wealth Management LLC is an SEC registered investment adviser. Privacy Policy. Cookies Policy.
Disclaimer Important Information This site is for informational purposes only. Information presented on this site does not constitute as investment advice.

Lumida Wealth Management LLC (‘Lumida”) is an SEC registered investment adviser. SEC registration does not constitute an endorsement of the firm by the Commission nor does it indicate that the adviser has attained a particular level of skill or ability.

Lumida's website (referred to herein as the "Website") is limited to the dissemination of general information pertaining to its advisory services, together with access to additional investment-related information, publications, and links. Accordingly, the publication of the Website on the Internet should not be construed by any client and/or prospective client Lumida’s solicitation to effect, or attempt to effect transactions in securities, or the rendering of personalized investment advice for compensation, over the Internet.

Any subsequent, direct communication by Lumida with a prospective client will be conducted by a representative that is either registered or qualifies for an exemption or exclusion from registration in the state where the prospective client resides.

‍Lead Capture Forms: By submitting your contact information in the forms on this site, you are not obligated to invest in Lumida's product or services.
‍Address: Lumida Wealth Management, 25 W 39th Street Suite 700, New York, NY 10018