U.S. Dollar Extends Slide After ADP Jobs Report

The U.S. dollar extended its slide, putting it on track for its longest stretch of declines since July 2020, Grace O’Donnell reported for Yahoo Finance.

Wall Street has grown bearish on the dollar in recent months.

The dollar index — which measures the U.S. dollar against a basket of currencies including the euro, yen, and pound — fell 0.5% to 98.85 in afternoon trading, breaking below a resistance level at 99.

Wall Street has grown bearish on the dollar in recent months, with analysts citing its rich valuation, risks to its safe-haven status, and uncertainty around Fed policy. In their 2026 FX outlook, Deutsche Bank strategists led by Tim Baker forecast further weakness in the dollar heading into 2026.

“Valuations, balance-of-payment dynamics and relative monetary-policy cycles are supportive of further gradual dollar weakness,” the Deutsche Bank strategists wrote in a Nov. 25 note.

“Our forecasts for 2026 are little changed from earlier this year. We project further dollar weakness but at a slower pace than 2025, leaving the trade-weighted dollar 10% weaker by end-’26. If these forecasts materialize, they will confirm that this decade’s unusually long dollar bull cycle is over.”