Euro Forecast

EUR/USD short-term technicals positive, but some analysts see risks of a turn lower again.

GBP/EUR looking better supported, 200-week moving average forms main technical roadblock.

Danske Bank is steadfast in its forecast that the Euro will move lower against the Dollar, taking it comfortably below parity during the course of the coming months.

The Euro has pushed to its highest level since the 1st of July on Tuesday, and further gains all the way to 1.10 cannot be ruled out says a major European bank.

Strategists at French bank Crédit Agricole are buying the British Pound against the Euro in the near term, finding the Eurozone's single currency has reached a short-term overvaluation.

EUR/USD could extend its near-term recovery over this coming week say analysts, although many remain of a view the market is witnessing a technical position clear-out and not necessarily the start of a long-term rebound.

GBP/EUR struggling to hold gains, suggesting downside potential for coming days.

The Pound to Euro exchange rate came undone in heavy losses following November's Bank of England (BoE) interest rate decision but it could be at risk of falling further and back near to early October lows in the days ahead if the market remains leery of Sterling going into Friday's release of UK GDP data. 

This is a significant week for global FX, with the Federal Reserve's policy update on Wednesday followed by Friday's all-important U.S. jobs report.

"Better, but not good," is how Goldman Sachs analyst Michael Cahill describes the British Pound's prospects in the wake of Rishi Sunak's anointment as Prime Minister.

Danske Bank lowers its forecast profile for EUR/USD saying the U.S. Dollar is yet to hit new highs and the Eurozone's trade shock is likely to persist.

HSBC has advocated a lower Euro trend for over a year and does not believe it is set to reverse yet.

Pound Sterling is tipped to fall against the Euro over the coming days by strategists at RBC Capital Markets in their latest "Trade of the Week" recommendation.

Global Reach Group have released their latest pack of key Pound Sterling forecasts covering the remainder of 2022 and the first three quarters of 2023.

It is too soon to call a pivot in the Euro to Dollar exchange rate (EUR/USD) say analysts, with one warning new lows will be gouged out over coming weeks.

Analyst Fawad Razaqzada at City Index queries whether the EUR/USD recovery has legs or is again destined for failure.

Investment bank Goldman Sachs has slashed its forecasts for the British Pound, showing further losses against the Euro are likely and a retest of the recent lows against the Dollar are likely.

Pound Sterling is set to complete a third successive weekly decline against the Euro.

The Euro to Dollar exchange rate entered the new week with a spring in its step and could look to extend its nascent recovery through the days ahead unless the tentative rebound is scuppered by the possible monetary policy implications of U.S. inflation figures due out on Tuesday. 

GBP selloff by no means over according to a major investment bank, despite hopes that the new government of Prime Minister Liz Truss can alter the outlook for the UK economy for the better.