Euro Forecast

The Euro to Dollar exchange rate entered the new week at nine-month highs and with scope for an extended recovery above above 1.09 and toward the 1.10 handle as a more benign global economic backdrop and hawkish European Central Bank (ECB) policy stance benefit the single currency.

The Federal Reserve is on course to cut interest rates as early as mid-2023 according to new research and the Euro will appreciate "significantly" against the Dollar as a result.

Barclays has raised its forecasts for the Euro to Dollar exchange rate in 2023 but warns the pair could yet end the first quarter lower than at current levels.

The Euro to Dollar exchange rate entered the new week supported by a rising global market tide that could see nine-month highs around 1.08 traded over the coming days but Thursday's U.S. inflation figures are a potential banana skin for the single currency.

The Pound to Euro exchange rate has appeared to be drawing a line under its December decline and could have scope to reverse some of its recent losses this week if global markets remain on the front foot and Sterling is able to navigate risks lurking in the domestic appointment book without upset. 

HSBC predicts GBP & EUR to turn tables on GBP in 2023.

The Euro to Dollar exchange rate reached eight-month highs last week but could struggle for traction this week if profit-taking or book-squaring ahead of the festive holiday leads the speculative market to reduce its exposure to the single currency, which is one of the market's few 'net long' positions. 

The Pound to Euro exchange rate fell heavily last week and still faces numerous medium-term headwinds but could be likely to find its feet around 1.1450 over the coming days if risk reduction ahead of the forthcoming holiday period leads the speculative market to cut back bets against Sterling. 

The Pound to Euro exchange rate was trading at substantially reduced levels ahead of the weekend but could have further to fall if the TD Securities strategy team is on the money when looking for Sterling to slip lower to around 1.13 in the fortnight or so to come.

The Euro to Dollar exchange rate has held onto much of November gain in early December trade but technical resistances continue to frustrate its path above 1.06 and Tuesday's U.S. inflation data is likely to be decisive of whether it can overcome those obstacles on the charts in the week ahead.  

Citi says the British Pound will retreat towards 2022's lows over the coming months.

EUR/GBP a sell in 2023 says Danske.

The lows for the Euro are in the rear-view mirror and the next big move is likely to be higher, says NatWest Markets.

Foreign exchange strategists at RBC Capital say the Euro is to rise against the British Pound in 2023 owing to their pessimistic view on the UK economic outlook.

The Pound to Euro exchange rate's multi-month recovery was frustrated last week as Sterling became caught in a dense pocket of technical resistance, which could continue to obstruct the path higher in the days ahead and what is set to be a quiet week for UK and European economic calendars.

GBP is near multi-decade lows and the risk of a major decline is limited, says NatWest Markets as it assesses the currency's prospects for 2023.

Italy's UniCredit Bank is betting on a renaissance in the Euro through 2023, particularly against the Dollar and Swiss franc.

The Euro to Dollar exchange rate (EUR/USD) is being tipped to advance over the course of December, a traditionally strong month for this pair.

The Euro to Dollar exchange rate has benefited significantly from the final quarter's risk asset rally but its recovery has recently been stalled by technical resistances around 1.04 on the charts and could give way this week to losses that pull the single currency back toward 1.0303 or below in the days ahead.

Sterling embarking onto a bumpy road through 2023, energy prices & inflation drive underperformances.

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