The euro has strengthened notably in 2025, climbing around 12–13% against the US dollar so far this year, with EUR/USD trading near 1.17. This rally has been fueled by renewed confidence in the European economy—supported by fiscal stimulus in Germany—while political uncertainty and expectations of rate cuts in the US have weighed on the dollar. Analysts remain divided on the outlook: some banks project a retreat toward 1.10 by year-end, while others see the euro holding between 1.15 and 1.20 if momentum in Europe continues.
