Author, Mike Smith
Our latest Euro to Dollar (EUR/USD) forecast, including the outlook for September 2026, the next three months and the key factors that could move the exchange rate.
Euro to Dollar Forecast
Our latest Euro to Dollar forecast: EUR/USD is currently trading around $1.16. We expect the exchange rate to remain within approximately $1.15–$1.18 during September, with the potential for the Euro to strengthen towards $1.18–$1.19 over the next three months.
| Forecast period | EUR/USD forecast |
|---|---|
| September 2026 | $1.15–$1.18 |
| Next 3 months | $1.16–$1.19 |
| End of 2026 | Around $1.18 |
Will the Euro rise against the Dollar?
Our current view is that the Euro has the potential to strengthen modestly against the US Dollar over the coming months, although we don’t expect the move to be straightforward.
Interest rates are likely to remain one of the biggest influences on EUR/USD.
The European Central Bank is expected to raise interest rates again in September as it responds to inflationary pressures. Meanwhile, the outlook for US interest rates is less certain, with the Federal Reserve balancing inflation concerns against the strength of the US economy.
If European interest rates remain higher for longer than previously expected, while expectations for US rates ease, this could support the Euro.
However, the opposite is also true. Strong US economic data or persistent inflation could lead to higher US interest rates and renewed Dollar strength.
For this reason, our central expectation is for relatively modest movement rather than a dramatic rise in the Euro.
Is it a good time to buy Dollars with Euros?
The Euro is currently trading at a stronger level against the Dollar than it has for significant periods over the past few years.
That makes current levels relatively attractive from a historical perspective for someone who holds Euros and needs to buy US Dollars.
However, whether you should exchange now or wait depends on your circumstances.
Our forecast suggests there is scope for some further improvement in EUR/USD over the coming months. But waiting for a higher rate also means accepting the possibility that the market moves against you.
The effect can be significant on larger transfers.
For example:
| EUR/USD rate | $ received for €100,000 | $ received for €500,000 |
|---|---|---|
| $1.14 | $114,000 | $570,000 |
| $1.16 | $116,000 | $580,000 |
| $1.18 | $118,000 | $590,000 |
| $1.20 | $120,000 | $600,000 |
A movement from $1.16 to $1.18 is only around 1.7%, but on a €500,000 transfer it represents a difference of $10,000.
This is why trying to achieve the absolute highest exchange rate isn’t always the most practical strategy. If the current rate meets your requirements, you may decide that removing some or all of the currency risk is more important than waiting for a potentially better rate.
Another approach is to exchange your money in stages rather than converting the entire amount at once.
Euro to Dollar Exchange Rate History
Looking at the history of EUR/USD helps put today’s exchange rate into perspective.
The Euro and Dollar reached parity in 2022, meaning €1 was worth approximately $1. At its lowest point that year, the Euro briefly fell below $0.96.
The subsequent recovery has been significant.
EUR/USD averaged around $1.08 in both 2023 and 2024, before strengthening during 2025 and 2026.
That means today’s exchange rate is relatively favourable for Euro sellers compared with much of the recent past.
It also demonstrates how substantially currency markets can move.
A difference of ten cents in EUR/USD represents a $10,000 difference on every €100,000 exchanged.
Euro to Dollar Forecast FAQs
What is the Euro to Dollar forecast for the next 3 months?
Our current forecast is for EUR/USD to trade broadly between $1.15 and $1.19 over the next three months. We see some potential for modest Euro strength, although US and European interest-rate expectations will remain important.
Will the Euro get stronger against the Dollar?
Our central forecast is for the Euro to strengthen modestly against the Dollar, but we don’t expect a dramatic move. Stronger-than-expected US inflation or economic growth could instead favour the Dollar.
Is now a good time to buy US Dollars with Euros?
Current levels are relatively favourable compared with much of the past few years. However, whether to exchange now depends on your timeframe, your required exchange rate and your willingness to risk the market moving against you.
Will the Euro reach $1.20?
It is possible. We think $1.20 is a realistic upside scenario, although it is above our central forecast for the immediate months ahead.
What happens to EUR/USD if the ECB raises interest rates?
All else being equal, higher European interest rates can support the Euro because they increase the potential return available on Euro-denominated assets. However, markets often anticipate rate changes before they happen, so an expected increase may already be reflected in the exchange rate.
What happens to EUR/USD if the Fed raises interest rates?
Higher US interest rates would generally be supportive of the Dollar. If the Federal Reserve raises rates more aggressively than the market expects, EUR/USD could fall.
How often is this Euro to Dollar forecast updated?
We regularly update this page to reflect changes in the EUR/USD exchange rate, central-bank policy, economic data and our latest view of the currency market.
Need guidance on EUR/USD exchange rates?
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