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The euro is shaping up to be one of the more interesting currencies in 2026.

Unlike the dollar, which remains overvalued and vulnerable to further weakness, ABN AMRO's economists say they are "constructive on the outlook for the euro." 

⚙️ Here's why.

At the heart of the call is the interest rate story.

ABN AMRO, one of Europe's most important banks, expects the European Central Bank to keep interest rates stable next year, while the Federal Reserve continues cutting. That means the interest-rate advantage the United States has enjoyed for most of the last decade starts to shrink.

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