Currency breakthrough? The dollar is losing, the euro has been gaining like never before
Dollar in the reverse, the euro gains. ING analysts indicate the possible return of the EUR/USD exchange rate even to the level of unseen since 2014.
The US dollar exchange rate clearly loses its value, and ING Bank analysts presented forecasts that may surprise many investors. According to their predictions, the EUR/USD currency pair may soon reach much higher levels than those present. The euro exchange rate relative to the dollar has already crossed the $ 1.15 limit, and ING experts do not exclude further fortifications – even around $ 1,20-1.25.
What awaits the dollar? There have been no such results for a long time
What’s more, in the extreme scenario, with a persistent decline in trust in the American currency, EUR/USD may increase up to $ 1.30. This would be an unknown result from 2014. ING analysts indicate that the key factor will be further weakening the dollar position on the global market and the policy of currency reserves, especially in Asia.
In their opinion, the euro area may gain in changes in the structure of foreign currency reserves, which are increasingly diversified at the cost of the dollar. In 2024, the euro already benefited from this trend. According to experts, further sale of American treasury bonds may affect the weakening of the dollar, which in turn would be conducive to the increase in the value of the euro.
The euro will grow in strength
Deutsche Bank also assumes that by the end of 2025 euro will strengthen to the level of $ 1.20, and by the end of 2027 it will reach $ 1.30. Such predictions are part of a wider picture of global financial shifts and the changing approach of investors to the risk.
ING, however, points out that although the euro can gain, Europe still has a lot to do to build investors’ trust in a level comparable to the USA. It will be necessary to increase the attractiveness of European financial markets and prove their stability in the long run.
