HSBC has revised its euro forecast higher, now projecting the single currency to reach $1.20 against the U.S. dollar by the end of 2025.
The upgrade reflects what the bank sees as a growing global shift away from reliance on the greenback — a structural de-dollarization theme it has begun to factor more explicitly into its outlook.
The bank expects broad-based dollar weakness to emerge over the coming months, driven by a combination of narrowing rate differentials, softer U.S. growth relative to the rest of the world, and increasing diversification by global reserve managers and trade partners alike.
This article was written by Eamonn Sheridan at www.forexlive.com.