French Industrial Bank: Benefiting from the growth of the American economy, the US dollar will make a comeback in 2026.

French Industrial Bank has said that the US dollar will rebound in 2026 due to the unaffected midterm economic growth prospects in the United States. Strategists, including Kito Jackson, wrote in a report, "We expect that the slowdown in US economic growth in the fourth quarter of 2025 will put pressure on the dollar in the coming weeks and early 2026, but we believe that the midterm economic growth prospects in the United States have not deteriorated." The bank predicts that the euro-to-dollar exchange rate will reach 1.20 in the first quarter of 2026, but will drop to 1.14 by the end of the year. Due to the impact of US tariff policies, the Canadian dollar may be the worst-performing currency among the G10 currencies next year. Throughout 2026, with the strengthening of the US dollar, the spot exchange rates of many emerging market currencies are expected to deteriorate.