Analysts at Crédit Agricole noted in a report that the U.S. dollar is facing structural headwinds this year as “American exceptionalism” gradually wanes and tariffs remain a lurking source of uncertainty. We have slightly raised our growth forecast for 2026 from 1.9% to 2.0%, but the overall narrative remains one of growth below potential.Additionally, analysts noted that the Federal Reserve may implement two more rate cuts this year. Uncertainty regarding the next Federal Reserve chair persists, but given President Donald Trump’s push for accommodative monetary policy, it is clear they will lean toward rate cuts, the analysts said. Crédit Agricole has downgraded its stance on the U.S. dollar to “cautious.”