In a massive new shift, HSBC bank has now predicted a new price value for the euro, expecting the currency to surge to $1.20 against the US dollar by the end of 2025. The bank’s striking price prediction for the euro has been inspired by the recent de-dollarization narratives, claiming how the US dollar has been experiencing a global fallout as nations continue to favor its alternatives.
Also Read: Euro Takes on a Bigger Role as De-Dollarization Advances
De-Dollarization Officially Confirmed?
Per the bank’s recent euro forecast, HSBC has now bet big on the euro, delivering a bullish forecast for the currency. Per the new updated prediction, HSBC has now changed its forecast for the euro to $1.20 against the USD, adding the elements of de-dollarization into the mix now. The bank stated how rising de-dollarization elements, including the phenomenon of nations shifting away from the dollar, have now weakened the USD to the core.
This fallout is now jeopardizing its global stance, which currently stands at a precarious threshold.
The bank later predicted how the dollar may continue to experience a downward spiral in the coming months, driven by a variety of factors. Forces such as rate differentials and softer US growth as compared to other nations are battering the US dollar. At the same time, increasing diversification of global world assets away from USD is one of the primary reasons fueling de-dollarization at the moment.
Moreover, Christine Lagarde of the European Bank is counting on the euro’s new role in the global order. Per Lagarde, the dollar’s downfall is paving the way for the euro to gain steam.
“We are witnessing a profound shift in the global order. Open markets and multilateral rules are fracturing. And even the dominant role of the US dollar. The cornerstone of the system, is no longer certain.” Lagarde later shared.
USD to Encounter More Volatility?
Per Bloomberg, the US dollar may continue to attract more volatility as Trump tariff hikes, coupled with geopolitical tensions, continue to accelerate its doom.
As per recent stats, the US dollar has lost 10% of its value against the euro, pound, and Swiss franc since Trump assumed office in January 2025.
Also Read: World Market: Gold Becomes 2nd Most-Held Reserve—Euro Gets Dethroned