Euro Forecast

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. 

The Pound to Euro rate climbed from near April lows last week and may attempt to extend its recovery over the coming days but it would likely take a significant 'hawkish' surprise from the Bank of England for it to avoid succumbing to the implications of any gloomier set of BoE economic forecasts this Thursday.

The Euro can avoid a fall to parity against the Dollar, although the odds of this are decreasing say analysts.

The coming week promises further losses for the British Pound unless the Bank of England announces a bigger than expected interest rate rise on Thursday.

Russia is moving into the sphere of energy wars, and this can only weigh further on the Euro says investment bank MUFG.

The Euro to Dollar exchange rate's decline could see it approach, or achieve 1:1, say two analysts we follow.

Foreign exchange strategists at DNB Markets say the Euro's foray below the 1.08 USD marker won't last long and they expect a steady recovery into year end.

If the uptrend is still alive - as per Credit Suisse's research findings - this 2022 high can yet be retested and even broken.

The Pound to Euro rate was dealt a setback last week as Sterling sustained widespread losses and the European single currency staged a short-lived rebound, although signs of a souring UK economic outlook could mean it’s set to remain subdued with limited prospects for recovery over the coming days.

The Euro could fall to par the Dollar, or rise back to 1.15 says Italian lender UniCredit who see one of two scenarios playing out over coming weeks.

The British Pound's gains against the Euro are now 'in the bag' according to new research from a major Scandinavian lender and investment bank.

New research finds the Dollar rally has some significant upside to come, suggesting EUR/USD is not done falling.

The Euro to Dollar exchange rate entered a holiday-shortened week close to its 2020 lows but could now find itself better supported if the People’s Bank of China (PBoC) comes to the aid of the European single currency in a bid to stymie further unwanted strength in the trade-weighted Renminbi.

The Pound to Euro exchange rate rallied back to within arm’s reach of post-referendum highs last week but could be seen stalling and then sprawling this week if the People’s Bank of China (PBoC) comes to the aid of the European single currency in a bid to fend of unwanted strength in the Renminbi.

Pound Sterling could be on the cusp of a large surge in value against the Euro, according to an analyst at data and information provider Thomson Reuters.

GBP/EUR correction risk elevated, upside limited, multiple headwinds threaten short- term setback.

UK inflation is set to peak at 10% says TD Securities, delivering a surge in prices that will inevitably hit economic activity and send Pound Sterling lower against the Euro and Dollar in coming weeks.