Euro Forecast

Strategists at Bank of America are buyers of the Euro as Germany reaches a "watershed moment" that will prove a "game changer".

The Euro-to-Dollar exchange rate (EURUSD) faces downside risks in the form of tariff announcements, a European Cenral Bank (ECB) decision and the U.S. job report.

The Euro downtrend will reboot and take it to below 1.0 against the U.S. Dollar.

While Deutsche Bank backs away from its short EUR/USD trade, Citi and BNP Paribas remain bearish, pointing to political uncertainty, trade headwinds, and a stronger investment case elsewhere.

The Euro-to-Dollar exchange rate can extend above 1.05 in the coming week, helped by hopes for a speed resolution to German coalition talks and expectations for further U.S. equity underperformance.

Pound Sterling retains a bullish tone against the Euro, although the rally risks a setback during the early stages of the week as German election results are digested.

The euro is expected to weaken further against the U.S. dollar, with EUR/USD likely to drop below parity this year, as diverging monetary policies and economic fundamentals favor the greenback, according to Lloyds Bank FX strategist Nick Kennedy.

The technical EUR/USD outlook improved last week with the pair printing a large bullish candle after establishing support around the 1.0300 level earlier in the week.

Progress towards a ceasefire in the Ukraine war is "far from a euro-positive," warn strategists at Barclays in weekly FX note.

The Euro is in a period of stabilisation following a multi-month selloff against the Dollar, but we look for a small setback to a recent recovery in the coming hours and days.

 Pound Sterling faces a busy calendar in the coming week that can ignite some welcome volatility against the Euro.

The Euro-to-Dollar exchange rate looks set to weaken once more in a week dominated by tariff fears, U.S. inflation and Eurozone GDP data for the final quarter of 2024.

The Pound-to-Euro exchange rate (GBPEUR) can extend its short-term trend higher, but we are entering a key resistance zone here.

The euro-dollar exchange rate is currently undervalued and oversold, according to Valentin Marinov, Head of G10 FX Strategy at Crédit Agricole.

The Euro is recovering against the U.S. Dollar amidst hopes the European Union's strategy to deal with Donald Trump will work.

The Euro is close to testing its 2025 lows against the Dollar following the commencement of a trade war that will soon envelop the EU.

The British Pound's rise against the Euro could soon stall as markets await the European Central Bank (ECB) decision.

The Euro is engaged in a short-term recovery against the Dollar and further gains are possible. Central bank decisions in both Europe and the U.S. form the risk highlights of the coming week.

Pound Sterling looks set to recover further against the Euro in a week that will be dominated by the European Central Bank (ECB) interest rate decision and German inflation release.

The Euro is rising against the Dollar as President Donald Trump indicates there is room to negotiate on tariffs, lowering the odds of a fall to parity in value.