Will the Euro (EUR) to US Dollar (USD) exchange rate exceed 1.25 in any single month (2026–2030)?

The Euro's Turnaround

The EUR/USD exchange rate has hovered near parity or slightly above (around 1.05 to 1.15) in the mid-2020s (simulated late 2025 context), driven by high US interest rates. The strong 'Yes' majority is based on the expectation of a significant convergence in central bank policy. As the US Federal Reserve concludes its hiking cycle and potentially enters an easing cycle, the European Central Bank (ECB) is expected to maintain higher rates for longer to combat sticky Eurozone inflation. This shift in relative interest rate differentials, combined with strong economic performance in the Eurozone, is highly likely to push the Euro to an appreciation level exceeding 1.25 in a peak cycle before the end of 2030.