HSBC's report on Thursday indicated that there will be no conditions for the USD to weaken in 2025 like it did when Donald Trump first took office in 2017. A strong dollar means that the euro will fall below parity next year, and the yen will decline towards 160.
Analysts led by Paul Mackel, HSBC's global Forex research chief based in London, stated in the report that the risks of a trade war, relatively higher US Treasury yields, and the divergence in the global growth cycle should continue to support the dollar.
Fiscal, monetary, and Forex policies are 'just right' for the USD, but 'not so' for the euro.
Not only for the USD, it is expected that the euro will weaken against various currencies in 2025.
The USD is expected to weaken against major currencies in 2026 and beyond.