Euro to Dollar Forecast: 1.0588 in Three Months

The Euro to Dollar exchange rate was a relative outperformer last week but could struggle to avoid being an underperformer this time out in crystallising risks to energy supplies and economies in Europe, and added headwinds stemming from fresh coronavirus restrictions in China. 

The Euro to Dollar rate reached new long-term lows last week and will face a battle to hold above a nearby level of technical support around 0.9911 on the charts in the days ahead unless the mood in global markets brightens or the burden that is the EU-U.S. interest rate differential lightens.

Timing the Dollar's unyielding rally remains one of the key questions for financial and global markets at present: there is a sense that the rally is nearing its top, but exactly where the top is and when it will finally turn is harder to divine.

Strategists at investment bank Nomura have raised their conviction on a bet the Euro to Dollar exchange rate (EUR/USD) is on course for a few 'big figure' moves below parity.

The Euro to Dollar exchange rate entered the new week back down near to the parity milestone and would be at risk of slipping to a new two decade low around the 0.9911 level if U.S. bond yields and the greenback look to extrapolate last week’s recovery through the days ahead.

The Dollar rally will continue and ensure the Euro stays under pressure, according to new research from Swedbank.

The Euro to Dollar exchange rate reached six-week highs during recent trade and although its recovery was stymied by resistance on the charts, the single currency could remain supported in the days ahead by a stalled U.S. Dollar and more accommodative Chinese monetary policy.

The Euro to Dollar exchange rate's (EUR/USD) recent rally will soon run out of steam and a retreat towards parity is again likely.

The Euro is set to test key levels against the U.S. Dollar as its recovery from levels below parity extends, say analysts.

EUR/USD is forecast to retreat back below the 1.0 level over coming weeks by analysts at Rabobank, the Dutch based international lender and investment bank.

The Euro to Dollar rate was dealt setbacks from near and afar last week but it’s the risk of a more protracted upturn in U.S. government bond yields that would threaten to push it back toward July’s lows if U.S. inflation figures further incite a still-hawkish Federal Reserve (Fed) this Wednesday.

Goldman Sachs have cut their forecasts for the Euro relative to the Dollar.

The Euro to Dollar exchange rate eked out only a fractional gain over a falling greenback during recent days but enters the new week on a firmer footing and could perform better in the period ahead if the single currency navigates successfully a looming gauntlet of U.S. economic data risks.

The Euro to Dollar exchange rate will unlikely to make another test of July lows below parity this week says UniCredit.

The Euro to Dollar exchange rate bounced resoundingly last week and could attempt to further reverse this month’s decline in the days ahead if the Federal Reserve (Fed) leaves the greenback hanging on Wednesday and all pans out well for the single currency on the European data front.

The Euro to Dollar exchange rate rallied from below the one-for-one level ahead of the weekend and could rise further in the days ahead in an attempted recovery of the 1.02 handle if everything pans out well for the European Central Bank (ECB) and Eurozone economies this Thursday. 

Danske Bank updates its EUR/USD forecasts and confirm the pair is destined to make a definitive move below parity.

The Euro to Dollar exchange rate this week touched parity but it has further to fall say analysts at one of the world's largest investment banks.

The Euro to Dollar rate tumbled heavily last week before coming within a whisker of parity but it rallied smartly in time for the weekend close and could now be set to defy gravity by trading buoyantly above a tentative bottom around roughly the 1.0020 level in the days ahead. 

The probability of the Euro falling to parity against the Dollar have risen says ING, and when it happens the foreign exchange market will likely witness fireworks.