Citibank predicts that the Euro will drop to a minimum of 1.10 against the US dollar by 2026, influenced by the growth of the US economy.

Citi predicts that the exchange rate of the US dollar to the euro will rise to 1.10 by 2026, as the US dollar is expected to benefit from the accelerated economic growth in the United States, and the rate of interest rate cuts by the Federal Reserve will be smaller than market expectations. Citi expects the euro to dollar exchange rate to fall to a low of 1.10 in the third quarter of 2026, a decrease of nearly 6% from the current level of 1.1650. The foreign exchange strategy team led by Daniel Tobon wrote in the report, "We have a constructive outlook on the US dollar for 2026, mainly due to expectations of economic recovery in the United States, especially as the midterm elections approach in November. Economic growth is not driven by a single dominant factor, but a combination of factors may lead to a more positive outlook, making it difficult for the market to further price in dovish expectations for Fed rate cuts."