Euro Forecast

EUR/USD has peaked and will likely trend lower over a three-month horizon, before rebounding strongly over the 12-month horizon.

The Euro is in demand and this will likely remain the case into the early May ECB interest rate hike.

The Euro to Dollar exchange rate (EUR/USD) is forecast higher at HSBC with analysts saying their conviction has been cemented by the most recent set of Balance of Payment (BoP) figures from the Eurozone.

UniCredit Bank forecasts further Euro gains against the Dollar that will bring new year-to-date highs above 1.10.

The Pound to Euro exchange rate was pushed back to early February lows last week and the risk is that any attempted recovery is hampered this week by a renewed ebb of the inflation tide on Wednesday.

Stock index futures and crude oil also jumped. The EUR/USD neared 1.10.

GBP/EUR near year's highs but with obstacles ahead.

"I reckon it is a matter of time before the EUR/USD breaks that barrier" - Fawad Razaqzada, City Index.

GBP/EUR rallies continue to be frustrated by selling pressure that ultimately tends to dump the pair back into a well-trodden range.

Currency tacticians at HSBC are looking for the Dollar to test 2023 lows over the coming weeks, allowing for a higher EUR/USD.

The British Pound's outlook remains upbeat in the near term although headwinds will likely ensure the prospect for substantial gains remains limited, according to one of Europe's largest commercial and investment banks.

Euro exchange rates can depend on further interest rate hikes at the European Central Bank (ECB) on news inflation in the Eurozone's largest economy continues to see broad-based inflationary pressures.

GBP/EUR could fall below 1.10 says Morgan Stanley, such levels are associated with 'crisis'.

The Dollar index is poised to extend its recent run of losses, according to a new analysis, a move that will offer a near-term boost for EUR/USD.

EUR/GBP a sell this week says Crédit Agricole model, Equals Money notes GBP/EUR to be in an uptrend.

GBP/EUR attempting recovery of key average at 1.1389  

The Dollar is ultimately set to appreciate against the Euro over the coming weeks and months say analysts at Danske Bank.

The Euro to Dollar exchange rate came close to its new year low at one point this week but would trigger a technical reversal of its six-month recovery trend on the charts in the event of any daily close below the 1.0548 level, according to technical analysis from BofA Global Research.

Technical strategists at Swiss bank Julius Baer have closed all short U.S. Dollar short positions in the wake of recent price action.

Improved sentiment saw Pound Sterling recover from its lowest levels since September and end February with a gain against the Euro, and March could see further gains according to some analysts we follow.