17/7/2025–|Last update: 13:40 (Mecca time)
The Wall Street Journal reported that the Swiss Investment Bank, UBS, raised its expectations for the euro, considering that it will become the main resort for international investors wishing to diversify their possessions away from the US dollar, amid indications of the continued decline in the dollar during the next year.
The bank is now expecting the euro to reach $ 1.23 by June 2026, compared to a previous expectation of $ 1.20. The bank also modified its estimates to the end of 2025 from 1.16 to $ 1.21.
“The euro stands out as” virtual option “for global investors seeking to reduce their dependence on the US dollar,” strategic experts, Constantine Bulls and Dominic Schneider said in an analytical memo.
According to the data of the London Stock Exchange Group, the price of the euro on Wednesday morning was $ 1.1617, after he recorded its highest levels in nearly four years at $ 1.1829 in early July.
The euro highlights as an option for global investors seeking to reduce their dependence on the US dollar
The wave of the dollar’s decline
American inflation data showed that an indicator Consumer prices The annual rose to 2.7% in June, compared to 2.4% in May, which increased the pressure on Federal Reserve To postpone any possible reduction toUseful interest rates In September.
Despite the rise of the dollar shortly after the data was issued, it returned and decreased by 0.1%.
“The instant height of the dollar may be from the coverage of exaggerated sales centers, but the general trend remains down,” wrote Francesco Pisuli, an ING analyst, wrote.
The euro is trading the moment the report is written at about $ 1.16.
UPS Bank: We prefer to buy the euro at close levels of $ 1.15, and we expect between $ 1.20 and $ 1.25 in 2026 ″.
Morgan Stanley: The euro may win an additional 9%
For its part, the Morgan Stanley Foundation expected that the euro gains will continue, adding that it may achieve an additional 9% increase against the dollar.
The institution analysts said in a recent memo: “The next stage of the rise of the euro may be the size of the previous stage or even greater … The real danger lies in missing this opportunity.”
They pointed out that investors who seek to move from the dollar will play a “pivotal role” in pushing the European currency up.
UPS bank suggested that the dollar remains compressed until 2026, for several factors, most notably the German financial support provided early, and the cash facilitation course stopped at the European Central Bank.
The report said: “We prefer to buy the euro at levels close to $ 1.15, and we expect between 1.20 and $ 1.25 in 2026,” the report said.
Political pressure on the federal reserve
The German “Kumits Bank” expected that the dollar gains will be limited in the short term.
“Repeated political invitations from President Trump to reduce interest rates undermine independence Federal ReserveWhat increases the pressure on the dollar. “
He pointed out that the current indicators do not support any sustainable recovery of the American currency, especially with the strong expectations of a reduction in the interest in September.