Strategist Lombard Odier continues to expect the dollar to weaken over the next 12 months. They said in a research report that there may be some consolidation, but a larger recovery seems less likely. Investors are modestly shifting from US assets to Europe and Japan, which poses a downside risk to the US dollar, but the recent poor performance seems to have continued. They said that the slowdown in the US economy and the possibility of unexpected growth in other regions in 2026 will cause the dollar to weaken and EUR/USD to rise. Our fair value estimate for EUR/USD is around 1.15, but considering the higher FX volatility and more geopolitical uncertainty, it would be prudent to consider the wider 1.15-1.20 range.

Strategist Lombard Odier continues to expect the dollar to weaken over the next 12 months. They said in a research report that there may be some consolidation, but a larger recovery seems less likely. Investors are modestly shifting from US assets to Europe and Japan, which poses a downside risk to the US dollar, but the recent poor performance seems to have continued. They said that the slowdown in the US economy and the possibility of unexpected growth in other regions in 2026 will cause the dollar to weaken and EUR/USD to rise. Our fair value estimate for EUR/USD is around 1.15, but considering the higher FX volatility and more geopolitical uncertainty, it would be prudent to consider the wider 1.15-1.20 range.