Euro Forecast

EUR/USD at risk of further Fed rate cut repricing, seen capped at 1.10.

Pound Sterling enters a new week as the top-performing major currency for 2024, but this will be challenged if this week's busy economic calendar disappoints.

The market remains too optimistic about the prospect of Federal Reserve rate cuts, and disappointment will lead to a notably weaker Euro over the first quarter of 2024.

Foreign exchange markets are underestimating the European Central Bank's resolve to maintain interest rates at current levels through the first part of 2024, according to a new analysis.

The Euro to Dollar exchange rate is unlikely to hold gains above 1.10 over the coming days, according to a new analysis. However, a weak U.S. inflation report on Thursday could keep the pair supported above 1.09 into the weekend.

The Pound to Euro exchange rate made a solid start to 2024, having posted a 0.75% advance in the first week of the new year.

NatWest expects the British Pound to steadily advance against the Euro and Dollar until about the third quarter of 2024 before paring gains into year-end as the Bank of England takes a knife to interest rates.

Your outlook on the Euro in 2024, therefore, depends on where you place the ECB on the rate cutting spectrum.

According to a year-ahead outlook briefing from one of Scandinavia's biggest banks, the Euro to Dollar exchange rate can rise to 1.11 before a multi-month decline sets in.

It's a counter-consensus call for U.S. Dollar strength in 2024 from one of the world's banking giants, resulting in the Euro to Dollar exchange rate ending the year closer to parity than 1.10.

The British Pound will fall to levels last seen against the Euro during the crisis sparked by former Prime Minister Liz Truss when she introduced her controversial budget in September 2022.

EURUSD respects overhead resistance, but setup still supportive.

Dollar weakness is a conviction call for 2024 at Amundi, Europe's largest asset manager.

EURUSD short-term outlook deteriorates, ECB in focus on Thursday, look for pushback against cuts.

GBPEUR faces an action-packed week of data releases and central bank decisions, which will determine whether or not it can have a crack at the 2023 highs or is relegated back to the well-trod range of recent months.

The Euro to Franc exchange rate is set for a bounce through the coming European Central Bank decision and could eventually move back above parity.

The Euro-Dollar could recover lost value if the European Central Bank (ECB) next week pushes back against rising expectations for interest rate cuts.

The Euro to Dollar exchange rate (EURUSD) looks set to struggle in 2024 and could disappoint those looking for a material fall in the Dollar.

Bank of America's 2024 forecasts confirm it is more bearish on the U.S. Dollar than the consensus, with analysts saying Federal Reserve interest rate cuts "matter more for the market" than cuts at other central banks.

According to an investment bank analyst we follow, Pound Sterling can extend a recent advance against the Euro.