In May 2026, the euro is trading at around 1.17 US dollars. That is a significantly more favourable level than eighteen months ago, when parity was close to 1.05. For French businesses paying suppliers, service providers or partners denominated in dollars, this situation represents a real opportunity to reduce operating costs. But a favourable window on the foreign exchange market only benefits those who know how to read it, anticipate it and act at the right time. In this article, we explain how to turn the euro’s current strength into a genuine operational advantage for your business.
Why EUR/USD at 1.17 changes something for your treasury
Take a simple example. Your company settles $200,000 of supplier invoices each quarter. At 1.05, that cost you around €190,500. At 1.17, that same amount represents only €171,000 — nearly €19,500 in savings, at constant volume, simply thanks to the movement in the exchange rate.
That difference does not disappear. It is reallocated — either in favour of your margin, or absorbed in spreads and fees if execution is not optimised.
So the question is not really “is EUR/USD favourable?” — it is. The question is: “is my business actually benefiting from it?”
Spot purchase or forward hedging: which strategy should you choose?
Two approaches are available to you depending on your situation.
Spot purchase You buy your currencies at the market rate at the time of settlement. It is simple, immediate, and suitable if your payment terms are short (less than 30 days) and if your margin can absorb a slight rate movement.
In the current context, with the euro around 1.17, buying spot on short-term USD invoices is a sensible strategy. You benefit from the favourable rate without locking yourself in for the long term.
Forward hedging You set today the rate at which you will buy your currencies in 30, 60 or 90 days — or even up to 12 or 24 months. It is the ideal solution if you have visibility over your cash flows (recurring orders, multi-year contracts) and want to neutralise the risk of a market reversal.
In the current context, locking in a rate close to 1.17 for purchases scheduled over the coming months protects you from a possible correction in the euro — and preserves your purchasing budget.
The two approaches are not mutually exclusive. Many businesses combine part of their purchases spot and a partial forward hedge to balance opportunity and security.
The right time: how to read market signals
Several factors are currently influencing the EUR/USD trajectory and deserve your attention.
The ECB’s monetary policy: expected rate hikes in June 2026 mechanically strengthen the euro’s appeal versus the dollar.
Geopolitical tensions in the Middle East: they keep a risk premium in the markets and increase short-term volatility.
US macroeconomic data: any sign of a slowdown in the United States tends to weaken the dollar and strengthen the euro.
These signals change quickly. What matters for your business is not predicting the market with precision — no one can do that. It is having someone who monitors these dynamics for you and alerts you at the right time.
What you gain by acting methodically
Active management of your foreign currency purchases, even a simple one, produces three direct effects:
Budget predictability: you know in advance what your foreign currency purchases will cost, without depending on market fluctuations at the time of settlement.
Margin protection: a reversal in EUR/USD does not erode your profitability on orders already committed.
Bargaining power: by controlling your FX cost, you can refine your selling prices or purchase terms more precisely.
This is not reserved for large groups with a dealing room. It is accessible to any SME as long as it is supported by the right partner.
How OSolto supports you with your foreign currency flows
OSolto is an ACPR-authorised payment intermediary, registered with ORIAS (no. 26004337), specialising in international flows for SMEs and individuals.
In practical terms, our role is to give you access to market exchange rates, advise you on the right execution timing according to your risk profile, and execute your transactions with the rigour of a professional operator — without you having to change bank or alter your organisation.
Whether you have regular flows in USD, GBP, AED or other currencies, we analyse your situation and propose a strategy adapted to your volume and payment horizon.
Conclusion
EUR/USD at 1.17 is a favourable market reality. But an opportunity is only worth something if it is seized methodically. Spot purchase or forward hedging, execution timing, reading macro signals: so many decisions that, when combined, make a measurable difference to your cash flow.
Would you like to know what your current foreign currency exposure actually amounts to and how to optimise it? Book an appointment for a free analysis of your flows — with no obligation.
→ Book a conversation with an OSolto expert: info@osolto.com
FAQ
Will the EUR/USD rate remain favourable in 2026? No forecast is certain. Analysts broadly expect a supported euro in 2026, particularly in connection with the ECB’s monetary policy. But volatility remains. That is precisely why hedging tools exist: they protect you from unexpected reversals.
What is the difference between a spot purchase and a forward hedge? A spot purchase allows you to buy your currencies at the current rate, for immediate or near-immediate settlement. Forward hedging allows you to lock in a rate today for future delivery. The choice depends on your visibility over your flows and your appetite for risk.
From what volume does it become relevant to structure your FX management? As soon as your foreign currency flows exceed €50,000 to €100,000 per year, structured management generates measurable savings. Below that, spot buying is often sufficient. OSolto helps you assess the relevant threshold for your business.
Do I need to change bank to work with OSolto? No. OSolto operates alongside your existing bank. Your accounts remain unchanged. We simply create a nominal account in your name with our partners to execute your foreign currency transactions on the best terms.
