Morgan Stanley: Dollar Slide to Continue, EUR/USD Q2 2026 Target 1.25

  • The Euro to Dollar exchange rate (EUR/USD) surged to 43-month highs above 1.1600 this week before a retreat to near 1.1500 as the Israeli strikes on Iran triggered a rebound in the dollar. Morgan Stanley expects the dollar index will slide a further 10% over the next 12 months.