Euro Forecast

GBP will endure a steady trend of decline in value agains the Euro over the coming 12 months shows research from Wall Street bank Goldman Sachs.

"Unless Lagarde commits to a series of 50s, EURUSD has limited room to gain" - TD Securities.

EUR/USD is likely going higher say currency strategists at Morgan Stanley who this week initiate a buy recommendation on the pair.

Foreign exchange strategists at Goldman Sachs say EUR/USD will leap 1.10 over coming months.

"EUR strength is in line with recent corrective rallies in 2022".

DNB Markets says in a new currency research note that FX investors seemed to ignor the risks that the ECB is to tighten policy, leading the Euro undervalued as a result.

Danske Bank are the latest major financial institution to predict the Euro to Dollar exchange rate will fall to parity.

EUR/USD on course for 20 year lows says JP Morgan, as conditions remain ripe for USD appreciation and ECB rate hikes to offer scant support for EUR.

"Should that narrative persist and lead the BoE to raise rates by less than what forwards anticipate... the currency could weaken more than our forecasts imply" - Barclays.

The Bank of England is close to ending its interest rate hiking cycle and this will leave Pound Sterling vulnerable to further losses against the Dollar and Euro, according to one investment bank.

The Euro to Dollar exchange rate slipped to a fresh five year low last week but could attempt a corrective rebound in the days ahead if global markets find reasons for cheer in signs that China's most stringent 'lockdown' thus far may be nearing its end. 

The Pound to Euro rate ended last week with a sharp rally from seven month lows but it could be likely to stall around the nearby 1.1827 level this week in which parliamentary testimonies from Bank of England (BoE) policymakers and a deluge of UK economic data are the highlights for Sterling. 

"EUR/USD is close to the 1.0340 key support, below which would see the prospect of parity become quite material" - ING.

Peak Dollar strength has passed and the Euro will show bullish traits in the medium-term shows new research from French banking giant BNP Paribas.

ING raise EUR/GBP forecasts, MUFG hold tactical buy on EUR/GBP and Crédit Agricole says EUR to benefit from ECB policy shift.

Investment bank Goldmans Sachs have raised their target on a trade betting the Euro will rise further in value against the British Pound.

The Euro to Dollar exchange rate has been unable to escape from near the bottom of its recent trough and entered the new week at risk of further losses that could see the single currency slipping toward some of its lowest levels since the opening half of 2017 over the coming days.

The Pound to Euro exchange rate has been hobbled alongside most other Sterling pairs but enters the new week couched in a pocket of important technical support levels on the charts and at a depth that creates opportunity for shortsighted dip buyers ahead of Thursday’s first-quarter GDP report.

"For us, the fact that the USD has risen into the rarified levels seen in Mar 2020 is not in of itself a reason to fade it" - Credit Suisse.

The Euro to Dollar exchange rate entered the new week close to five-year lows following a dire April month but could attempt a corrective rebound in the days ahead if the Federal Reserve (Fed) kicks a quantitative tightening, or QT, can down the road into the summer months.