The euro looks set to keep grinding higher against the dollar — and the bullish case spans both this week and the next two years.
On the tactical side, some observers note the euro firmed late last week even as the US revived tariff threats on European car imports. That resilience in the face of clearly negative headlines suggests real underlying demand for the currency, not just positioning noise.
The longer-term view is more striking. One forecast sees EUR/USD reaching 1.21 by the end of 2026 and 1.25 by the end of 2027. The drivers: global investors gradually diversifying portfolios away from the dollar, and a slow easing of Middle East tensions. Inflation is treated as a headwind, but a manageable one — not enough to derail the trend.
The two views line up on direction even if they operate on very different clocks. The near-term read confirms the euro can absorb bad news without breaking. The strategic call puts numbers on how far the move could run if dollar diversification plays out as expected.
Bottom line: the consensus here is that dollar dominance is slowly fading at the margin, and the euro is one of the cleaner ways to express it.