Currency Analysis: October 2026

🇺🇸 US Dollar The US dollar is showing a phase of relative stability in October 2026, after the Federal Reserve cautiously continued its interest rate cut cycle over the course of the year. The broad dollar index is moving sideways within a narrow range, which points to a certain balance between monetary policy expectations and economic momentum. The US economy continues to grow moderately, supported by a robust labor market and persistently solid domestic demand, while inflation is gradually approaching the central bank’s target. What speaks in favor of the dollar is the comparatively high yield on short-term government bonds, which preserves the interest rate advantage over other major currencies despite the easing. Weighing on it, by contrast, are the growing national debt and political uncertainty ahead of the midterm elections, which at times dampens investor confidence. Overall, the dollar presents itself as resilient, but without a clear upward impulse. 🇪🇺 Euro The euro is moving in an environment of cautious recovery in October 2026. The European Central Ban …