HSBC Predicts Euro Surging to 1.20 as De-Dollarization Goes Turbo

The dollar's dominance is cracking—and HSBC says the euro's poised to capitalize.

As global finance shuffles away from USD, analysts project a 1.20 EUR/USD rally. Not quite 'to the moon,' but enough to make forex traders ditch their dollar-denominated coffee breaks.

De-Dollarization Accelerates: No Turning Back

Central banks are dumping greenbacks faster than a hot potato. Gold? Bitcoin? Now add euros to the escape hatch list. HSBC's call suggests even traditional finance sees the writing on the wall—though they'll probably still charge you 3% for the privilege of converting.

Forex on Notice: The 1.20 Target

That specific number isn't random. It's the line where currency hedges start bleeding and import/export math gets spicy. Watch for fireworks when liquidity meets legacy finance's slow-motion pivot.

One cynical footnote: Nothing unites bankers like chasing a trend five years after crypto natives called it.

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.

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.