Euro to Dollar Forecast: 1.0817 in Three Months

The Euro to Dollar exchange rate entered a holiday-shortened week under pressure near two-month lows but could get an opportunity to recover some lost ground in the days ahead if the latest European inflation figures are anything like those released in the UK last week. 

JP Morgan has downgraded its growth forecasts for China in a development that offers support to the Dollar while weighing on the Euro which is highly sensitive to growth prospects in the world's second-largest economy.

The Euro to Dollar exchange rate's correction from year-to-date highs has appeared to peter out in recent trade, leaving intact support levels just beneath the market on the charts, though local economic data and developments across the Atlantic could yet see these tested again this week.

"All this is likely to keep the US dollar supported for a while longer" - XM.com.

Matthew Weller, Global Head of Research at FOREX.com, reports that the U.S. dollar is experiencing a rise against all major rivals, including the Euro, despite the absence of significant U.S. economic data.

The Euro to Dollar exchange rate rose back onto its feet near one-month lows to open the new week but might risk slipping to its softest levels since late March if transatlantic economic data spoils the market's appetite for the single currency.

The EUR/USD is clearly going to be in focus this week with both the Fed and ECB rate decisions to come ahead of U.S. non-farm payrolls report on Friday.

The Euro to Dollar exchange rate entered the new month procrastinating around the 1.10 handle but would likely struggle to sustain itself above that level unless this week's central bank policy decisions provide the single currency with a clearer interest rate advantage over the greenback.

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

The Euro to Dollar exchange rate has held onto the bulk of its April gains in recent trade but could further them this week if congressional drama related to the U.S. debt ceiling topples the greenback or if European Central Bank (ECB) policymakers receive a hawkish shock from the local economic data. 

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 Euro to Dollar exchange rate has run aground following a month-long rally and might now consolidate its recent gains this week but with prospective dip buyers already queueing in the wings, the single currency could also find itself well supported when near and below the 1.08 handle up ahead.

BNP Paribas Securities Corp's Head of Americas Macro Strategy, Calvin Tse, has suggested that the US dollar (USD) could be set for a multi-year structural decline due to several factors.

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

The Euro to Dollar exchange rate shifted back onto its front foot and appeared poised for further gains in the opening session of the holiday-shortened week but would likely struggle to advance beyond a nearby technical resistance level without further losses for the greenback over the coming days. 

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

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

The Euro to Dollar exchange rate set itself on course for a sixth week of gains to open the new month but its recovery could be hampered by profit-taking above the nearby 1.09 level up ahead where a double-barreled layer of technical resistance also impedes the path higher from the charts.

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.