Week of 26 - 30 January 2026  |  All eyes on the dollar

In this edition of Amundi's Weekly Market Directions: 

• The dollar index has fallen by about 2% so far this year, in addition to the more than 9% decline seen last year. 

• The dollar’s path will depend on US economic resilience, the Fed’s decision making, and policies of the US administration. 

• We think the incoming Fed Chair Kevin Warsh is unlikely to ease policy beyond what is justified by economic fundamentals. 

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Monica Defend

Monica Defend

Head of Amundi Investment Institute

“The dollar’s era of unchallenged centrality is giving way to contested dominance. Public institutions are diversifying reserves to mitigate risk, but the private sector’s reliance on the dollar remains largely unchanged.”

Monica Defend, Head of Amundi Investment Institute

Read the full weekly market directions

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Unless otherwise stated, all information contained in this document is from Amundi Asset Management S.A.S. and is as of 3 February 2026. Diversification does not guarantee a profit or protect against a loss. The views expressed regarding market and economic trends are those of the author and not necessarily Amundi Asset Management S.A.S. and are subject to change at any time based on market and other conditions, and there can be no assurance that countries, markets or sectors will perform as expected. These views should not be relied upon as investment advice, a security recommendation, or as an indication of trading for any Amundi product. This material does not constitute an offer or solicitation to buy or sell any security, fund units or services. Investment involves risks, including market, political, liquidity and currency risks. Past performance is not a guarantee or indicative of future results.
 

Date of first use: 3 February 2026

Doc ID: 5175164