Currency & Trade

The euro surged 14% against the dollar in 2025 as the US currency fell to its lowest levels since 2022. The British pound gained 7% to $1.31 despite UK market pressures. Currency volatility reflects monetary policy uncertainty ahead of the Federal Reserve leadership transition in June 2026.

The euro has appreciated 14% in 2025 as the US dollar hits its lowest level since 2022, creating new challenges for European exporters. The British pound gained 7% over the same period, though analysts at Mizuho Bank forecast potential weakness below $1.30. Safe-haven flows have pushed the Swiss franc higher amid shifting currency dynamics.