ING Forecasts U.S. Dollar Strength Through Early 2027

ING predicts the U.S. dollar will remain supported through the first quarter of 2027. The financial institution attributes this strength to robust U.S. economic growth, inflation levels exceeding 3%, and a hawkish monetary policy maintained by the Federal Reserve System.

The bank expects the currency to weaken by the spring of 2027 as inflation declines. Potential catalysts for this decline include a correction in the AI market or a shift in investment funds toward Europe and Japan if those regions show more attractive growth.

Regarding the EUR/USD exchange rate, ING suggests a gradual recovery toward 1.18 by the end of 2027. This recovery depends on several factors, including softer U.S. interest rates, moderating energy prices, and the resolution of political risks in France.