Morgan Stanley Research sees a scope for USD downside in the near-term especially vs CHF.

"We expect renewed focus on US currency policy to weigh on the USD in the near term, particularly versus  CHF,"MS notes.

"The USD traded at a ~3% discount to yield differentials in January 2026 as investors discussed various policy levers the administration might choose to weaken the USD.

Discussion at the time centered on a range of potential policy channels, including intervention, Fed leadership, Greenland-related developments and a proposed sovereign wealth fund. FX US. This discount compressed after Mr. Warsh's Fed nomination. 

The USD then traded at a ~3% premium to yield differentials in March following geopolitical developments in the Middle East, before converging back to roughly yield-implied levels in May and June," MS adds.