Dollar To Euro Forecast – Is Now The Best Time To Buy Euros From Dollars?

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The US Dollar-to-Euro forecast is an indication of where technical and fundamental analysts think the EURUSD price may be in the future. You can use these exchange rate forecasts to help you decide if now is the right time to buy Euros with US Dollars, or if you should wait until the price improves.

US Dollar to Euro forecast highlights

  • EURUSD surged and broke long-term downtrend resistance
  • Catalyst for this downtrend reversal is a weaker USD
  • Macro fundamentals are weighing on USD; whipsaws may happen on tariff news flow

How has US Dollar performed against the Euro recently?

USDEUR is one of the most traded currency pairs in the FX market. Transatlantic trade between the largest economy and the most advanced trading bloc is amongst the most world’s vital. Day and night, goods, capital and people flow to and fro.

But the new US administration is trying hard to pour sands in this trading system. Tariffs after tariffs are announced, almost on a weekly basis, to address the US trade deficit. Against the EU, frantic negotiations are taking place behind the scenes in order to bring a new tariff agreement into fruition. The next deadline for an agreement was announced at July 9.

Increased trading friction is never good for economic growth. Since it increases consumers and corporate capital burdens. This drastically reduces the capacity for spending and investment. Since February 2025, EURUSD (USD to change one EUR) has been in a strong recovery mood. The most critical driver of this turnaround is a weaker USD.

Investors are no longer uniformly positive on the USD.

Technically, the rate even overcame the long-term downtrend resistance, a trendline that has been in place since 2008 (see below). This could be a significant long-term reversal of Euro’s persistent weakness. But Euro-USD’s price trend is rarely straightforward. More often than not, the rate produces plenty of choppy counter-trend moves, even when the medium-term trend is persistent. As such, expect some sideways fluctuation in between 1.100-1.150.

Is it a good time to buy Euros with US Dollars?

The dollar has weakened against a number of currencies year to date, including the Euro.

Investors are selling greenbacks because of a swing in expectations. Hence the rally in EURUSD from 1.030 to 1.130.

If you need plenty of Euros in the near term, should you buy some now before it weakens further? The answer is ‘yes’. 

However, EURUSD is choppy and may weaken back to 1.100 if an EU-US agreement materialise before July 9. But betting on policy moves entails some risk.

Will the Euro strengthen against USD in the second half of 2025?

For the US dollar to put on a weakness like it did since January is rather unusual. The US economy is the largest and most vibrant; and the US stock market is in a league of its own. Nearly all the largest stocks in the world trade out of Nasdaq and NYSE (see, eg, companiesmarketcap.com)

But the sweeping tariff policies announced on April 2 has increased investor concerns about the stability of US credit-worthiness. For instance, Moody’s, the global rating agency, recently downgraded US sovereign credit rating. At the same time, the country’s economic outlook was lowered to ‘negative’. This exerts considerably pressure on US credit assets like US Treasuries and Dollar. Note that long-maturity Treasuries are trading near their multi-year lows (meaning elevated Treasury yields).

A crack in the bond market,” warned Jamie Dimon, CEO of JP Morgan (FT, £) “is going to happen.”  But when? Now that’s a harder question to answer. As long as US executive policies continue to unsettle investors, USD will hardly put on a sparkling display of strength.

Further, the new ‘One, Big Beautiful Bill Act’ contains certain sections that could reduce the allure of US assets, such as the Section 899 (“ENFORCEMENT OF REMEDIES AGAINST UNFAIR FOREIGN TAXES.”). This legal section may “increase rates of tax on foreign persons of discriminatory foreign countries.” How will this apply in reality? Nobody knows yet. All these are long-term, but important, issues to be addressed.

Back to the question of whether EUR will strengthen against the USD in 2025. This  really depends on the outcomes from those tariff negotiations.

For now, I assume that the negotiations will drag on and that we will not return to the pre-Liberation Day tariff rates. The medium-term risk for EUR-USD is to the upside.

What is the EURUSD forecast in weeks?

The market is not uniform agreement in the direction of the EURUSD. Look at the dispersion of grey dots in the chart below. Some expect the rate to extend the uptrend in the next few weeks; some anticipate a consolidation to 1.10 (see below).

The range is wide. But if we look further, the range of forecasts narrows. This is because traders expect the USD to stay under pressure due to tariff policies.

Unless some dollar-positive catalysts emerge, the sharp reversal in EURUSD is expected to prolong in the next quarter.

Source: fxstreet.com (May 2025)

Where is the best place for buying large amounts of Euros from US Dollars

There are two different ways people buy Euros from US dollars:

  • Through a currency broker – when transferring money abroad
  • Through a forex broker – when speculating on the price of currency

You can use this comparison table of US currency transfer companies to see how many currencies they offer, what the minimum USD transfer is and if they offer forwards and currency options as well as when they were established. You can either visit each currency broker individually or use our currency quote comparison tool to request multiple exchange rates.

Or, if you are more interested in trading EURUSD you can compare US forex brokers here.

At the che current EURUSD exchange rate 1 USD is worth 0.873324309 EUR which is a change of -0.25% from the previous day’s closing price. Over a week EURUSD is -0.25%, compared to its change over a month of -1.2% and one year of -5.03%.

EURUSD exchange rate data is updated every 15 minutes.

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