Euro Forecast

Goldman Sachs raises its Pound to Euro exchange rate forecast saying the UK currency's recent strength "has staying power".

The Pound to Euro exchange rate entered the new week near mid-June highs just above 1.17 but might most likely consolidate between there and somewhere around the 1.16 level in the days ahead unless Sterling is able to find reasons for excitement in the UK's latest employment and GDP figures. 

GBPEUR exchange rate looks to test the 1.17 level over the coming hours and should remain supported over the coming month - data allowing - with further tests of the 2023 high probable if the May-July trend of appreciation remains intact.

"We think this is increasingly reminiscent of the late-1990s dotcom era, and now expect a similar bubble to form in the U.S."

The Euro is set to extend a rally against the Dollar through the second half of this year says a new strategy note from investment bank Nomura which argues the worst might have already passed for the Eurozone economic data pulse.

The British Pound should remain supported says Goldman Sachs in an analysis of the currency's outlook that follows last week's Bank of England's decision to raise interest rates by 50 basis points.

EURUSD recovery is effectively over, according to a new analysis from European lender and investment bank ABN AMRO.

The U.S. Dollar will "not give up easily" says UniCredit Bank in a mid-year assessment of the currency market that shows a concerted break above 1.10 in the Euro to Dollar exchange rate (EURUSD) is a story for 2024.

The Pound to Euro exchange rate has been carried to one-year highs in recent trade but inflation data and a difficult interest decision for the Bank of England (BoE) could lead to volatility in fits and starts with risk of a top forming around a nearby resistance level on the charts in the days ahead. 

Despite the sharp appreciation of the euro following the European Central Bank (ECB) meeting, Asmara Jamaleh, a researcher at Intesa Sanpaolo Bank, maintains a cautious stance on revising his euro forecasts higher.

Bank of America has raised its Pound forecasts saying the UK currency will remain supported despite the UK economy's "grim fundamental outlook".

TD Securities has laid out its strategy scenario for the Euro to Dollar exchange rate (EURUSD) heading into the midweek Federal Reserve policy decision.

The Euro extends a recovery against the Dollar ahead of this week's central bank meetings but analysts at Rabobank are not convinced the recovery will be sustained for a prolonged period.

The Euro to Dollar exchange rate has rebounded from near three-month lows in recent sessions and entered the new week on the front foot but U.S. inflation figures and interest rate decisions from the Federal Reserve (Fed) and European Central Bank (ECB) are just some of the factors that could undermine its recovery in the days ahead. 

GBP/EUR close to one-year high after European data deteriorates, little scope for data to lift Bank Rate expectations or GBP further.

The Euro to Dollar exchange rate (EURUSD) is still favoured to return back above 1.15, however, near-term Dollar strength will continue to frustrate any major recovery for some time yet.

The Pound to Euro exchange rate (GBPEUR) remains in an uptrend despite the setback seen at the start of the week.

EURUSD is on course to test parity again according to analysis from Capital Economics.

Currency analysts at Credit Suisse predicted Pound Sterling's outperformance in recent months long before the majority of their peers in investment banking circles.

EUR struggles on news Germany in recession, UK long-term yields fall following inflation data, but yield curve inversion can support GBP says ING.