EUR/USD in 2026: the dollar rebounds in October and the pair nears its year low

EUR/USD closed October 22 at 1.1205, less than three tenths above its 2026 low of 1.1177, set on October 7. So far in October, the pair is down 0.8%, from 1.1298 on the 1st.

In the year to date, the euro is down 4.4% against the dollar. The pair started 2026 at 1.1721, peaked at 1.1974 on January 28 and has fallen 6.4% since. The summer recovery, which took it back to 1.1652 on September 9, has almost fully reversed.

How to read it: EUR/USD shows how many dollars one euro buys. A falling pair means a stronger dollar and a weaker euro. For European savers, a weaker euro makes dollar-denominated assets more expensive to buy, but raises the euro value of existing dollar holdings.

EUR/USD is the most traded currency pair in the world. It reflects the interest-rate gap between the ECB and the Federal Reserve, relative growth and global risk appetite.

Source: ECB daily reference rates (22/10/2026 fix). Chart: own work with ECB data.