# US Dollar Weekly Forecast: The Fed is seen reducing rates twice in 2026

> The dollar closed its second straight weekly loss, with the DXY falling to around 95.50 before recovering after the Fed kept rates at 3.50%-3.75%. Markets are now focused on US labour data, and analysts expect the Fed to cut rates twice in 2026.

- Date: 2026-01-30 · published 2026-01-30T12:00:00.000Z
- Category: macro · region US · magnitude low
- Page: https://feedsoft.ai/events/21241-us-dollar-weekly-forecast-the-fed-is-seen-reducing-rates-twice-in-2026
- Commodities: [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

Expected Fed easing tends to keep the dollar soft, which supports dollar-priced commodity demand from abroad. The outlook depends on labour data, so volatility in grain and oilseed prices may follow the currency.

## Read by commodity

- DXY: neutral

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2024-07-10 | [Why the Fed cutting interest rates may weaken the U.S. dollar](https://feedsoft.ai/events/29459-why-the-fed-cutting-interest-rates-may-weaken-the-u-s-dollar.md) | -0.6% | +0.2% |
| DXY | 2020-04-22 | [Forecasts for the loonie and U.S. dollar](https://feedsoft.ai/events/53870-forecasts-for-the-loonie-and-u-s-dollar.md) | -0.4% | -1.1% |
| DXY | 2018-01-17 | [The US Dollar is Not Yet Ripe For a Reversal, Says Westpac](https://feedsoft.ai/events/67170-the-us-dollar-is-not-yet-ripe-for-a-reversal-says-westpac.md) | -0.3% | -0.5% |
| DXY | 2018-02-26 | [The one interest rate differential that is driving the US dollar \| ING THINK](https://feedsoft.ai/events/66696-the-one-interest-rate-differential-that-is-driving-the-us-dollar-ing-think.md) | +0.6% | -0.3% |
| DXY | 2018-09-26 | [A crucial Fed meeting for the dollar \| articles \| ING THINK](https://feedsoft.ai/events/63240-a-crucial-fed-meeting-for-the-dollar-articles-ing-think.md) | +0.2% | +1.5% |

## Sources

- fxstreet.com: https://www.fxstreet.com/analysis/us-dollar-weekly-forecast-fed-caution-meets-political-noise-202601301850

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.