Warnings about a JP Morgan UK slowdown have emerged as Britain’s economy faces mounting pressure, and at the same time, something bigger is happening on a global scale. De-dollarization explodes globally right now, with dollar reserves falling to a two-decade low that’s catching everyone’s attention. Bank of England policymaker Alan Taylor warned the UK risks what he calls a “bumpy landing” with prolonged economic weakness ahead.

Meanwhile, the latest analysis from JP Morgan on de-dollarization shows dollar reserves dropped below 60 percent of global holdings, which is actually the lowest level since 1994. The forecast from JP Morgan about the dollar predicts gold could reach $5,000 per ounce by mid-2026 as these trends around de-dollarization in 2025 accelerate and central banks diversify away from U.S. currency dependence.

Also Read: JP Morgan: Rising Risks Signal Change, Not Collapse for the US Dollar

Understanding JP Morgan UK Slowdown, Dollar Forecasts, And De-Dollarization Trends

Britain’s Economy Faces Three Possible Landing Scenarios

Alan Taylor outlined three scenarios for Britain’s economy, and the soft landing is becoming less likely at this point. The bumpy landing scenario—which Taylor considers increasingly probable—would see inflation undershoot targets and the economy slip into sustained weakness that could last quite some time.

Taylor stated:

“By maintaining what I think is a too restrictive path of interest rates, we may have braked too hard, such that inflation cannot smoothly return to target with the economy close to potential.”

The hard landing represents the worst outcome, and it’s being watched closely as concerns about the JP Morgan UK slowdown intensify. Taylor explained:

“This was a remote and low probability event a year ago, but the risk is rising. In this scenario, weak demand at home can lead to a more forceful downturn, where recession dynamics start to kick in that can be very difficult to contain or even reverse. The economy has been flirting with zero growth, and the realisation of negative readings could easily change the future path for the worse. The probability of this outcome is now not trivial.”

Trade Diversion Compounds JP Morgan UK Slowdown Concerns

Trade diversion from Trump’s tariffs adds another layer to the JP Morgan UK slowdown risks. Taylor warned:

“First, the US raises barriers on imports from low-cost producers, who then redirect their goods to third countries, like the EU, who in turn respond with further barriers to those low-cost producers, who then move on again to direct their large flows of exports to an ever-smaller target group of open export markets. Naturally, the UK comes to mind as one of those potential targets.”

Dollar Reserves Hit Historic Lows As Central Banks Shift Strategy

Dollar-denominated securities held by central banks were reduced by $59 billion in 2024, and this reflects a broader pattern that’s been building. Dollars now make up just 57.8 percent of global reserves—the lowest since 1994 and a 7.3 percent drop over the past decade. Back in 2002, dollars accounted for about 72 percent of reserves, so the shift has been substantial.

The analysis from JP Morgan on de-dollarization directly linked this trend to rising gold demand among central banks. The note from the bank stated:

“The main de-dollarization trend in FX reserves, however, pertains to the growing demand for gold. This increased demand has in turn partly driven the current bull market in gold, with prices forecast to climb toward $4,000/oz by mid-2026.”

This forecast about the dollar from JP Morgan reflects how central banks are moving away from dollar dependence as momentum around de-dollarization in 2025 builds. The connection between the JP Morgan UK slowdown and these global currency trends isn’t coincidental—both signal broader economic uncertainties.

Market Pressures Mount As De-Dollarization Accelerates

Silver prices hit record highs in what’s been described as an “almighty short squeeze” as precious metals demand surges. This reflects the reality that de-dollarization explodes globally right now, with investors seeking alternatives to dollar-based assets. China imposed Hanwha curbs on U.S. shipping, showing how trade conflicts are accelerating currency diversification strategies.

Also Read: IMF Demands Zimbabwe To Provide More Details on De-Dollarization Plans

Jamie Dimon of JP Morgan warned of more “cockroaches” emerging after the collapse of First Brands and Tricolor, suggesting hidden vulnerabilities throughout financial systems. U.S.-China trade tensions hit Wall Street, and the IMF warned that U.S. shares risk a “sharp correction” while markets appear somewhat complacent.

The UK pension triple-lock will rise by 4.8 percent after earnings revisions, creating additional fiscal pressures just as the economy weakens. These dynamics—the JP Morgan UK slowdown domestically and the shifts in global reserve currencies—have built up for years, but they’re reaching critical points that nobody can ignore anymore. The warnings about a JP Morgan UK slowdown and the analysis of de-dollarization from JP Morgan both point to fundamental changes in how the global economy operates, and these changes are affecting markets right now.