Is the Federal Reserve likely to cut interest rates more aggressively than market expectations? Mitsubishi UFJ Bank recently issued a major warning: this rate-cutting cycle is coming fiercely, and the dollar's decline may be unstoppable.

Key signals are already being released. Fed Chair Jerome Powell recently admitted that since April, U.S. employment data has shown obvious "water" — approximately 6,000 jobs are being overstated each month on average. This means that the seemingly strong labor market is actually quietly losing jobs. The economic situation has reached a rare turning point, and the reality of monetary policy is more tense than official data suggests.

Major changes in the exchange rate market have already begun to appear. Mitsubishi UFJ Bank's latest forecast model indicates that the euro against the dollar will rise from the current 1.169 level to around 1.24 by Q4 2026. What does this increase mean? The dollar index will face enormous depreciation pressure, and a restructuring of the entire exchange rate system is imminent.

Is dollar dominance really about to loosen? In this macroeconomic context, should you reconsider your asset allocation? Will the euro seize this opportunity to rebound, or will the dollar eventually bounce back? How will the crypto market react? These are the key questions for the next two years.

Feel free to share your views — what do you think about this round of exchange rate battles?