Euro Forecast

The Dollar's run of strength that saw it dominate global FX markets in 2021 is not set to end soon, according to one of the largest lenders in the United States.

"Peak EUR" has passed and further losses are likely in 2022 say foreign exchange strategists at Danske Bank, who have released their top trades for 2022.

EUR/USD attempting to stabilise above 1.1290, aided by global market weakness and risk aversion.

The Pound to Euro exchange rate has unwound much of its Q4 rally and risks slipping back toward early November’s lows in the 1.1630 area if the market continues to eschew risk currencies in favour of safe-havens over coming days.

Foreign exchange strategists at Credit Suisse are holding onto their view that the Euro will head lower against the Dollar, saying the Federal Reserve won't "bail out investor sentiment".

Federal Reserve Chair Jerome Powell sent a lighting rod through financial markets on the final day of November when he said he no longer expects inflation to be temporary.

The Euro-Dollar exchange rate ended last week with a steamrolling rally alongside the safe-haven Swiss Franc and Japanese Yen but could struggle for further traction over the coming days if global markets stabilise and as coronavirus related risks mount on the European continent.

GBP is predicted to come under pressure against the Euro and Dollar ahead over coming weeks and months, with a more sustained recovery only likely in the second half of 2022.

EUR/USD pressuring support at 1.1292, 1.1248 and risks unravelling to 1.10 without a USD retreat.

GBP/EUR supported near 1.1838 & 1.1783, meets resistance at 1.1950, scope for 1.20.

The latest forecasts from Barclays suggest current lows could have been the single currency’s nadir.

The Euro to Dollar exchange rate has resumed a "broad based" bear market shows analysis from private Swiss bank and wealth manager Julius Baer.

The Euro to Dollar rate sustained its largest decline since late September last week, breaking a major technical support level while placing another near 1.1425 under pressure along the way.

"There's growing talk of the EU suspending its trade deal with the UK. But fresh Brexit uncertainty may not have as big a market impact as perhaps presumed" - ING.

"We doubt that GBP will profit much from early rate hikes" - Swedbank.

EUR/USD supported at 1.1495 & may attempt rebound as USD tires in struggle with major resistance on charts.

GBP/EUR starts the new week hobbled by the market response to last week’s Bank of England (BoE) monetary policy decision but it could be likely to stabilise above the nearby 1.1650 level over the coming days, albeit with only limited upside potential.

EUR/USD could succumb to fresh 2021 lows in the wake of the Federal Reserve policy update, according to analysis released ahead of the central bank's November policy update.

The Euro could be on course to retest the 2021 low against the Dollar according to a noted technical analyst, although where it ends the week could depend on the outcome of the Federal Reserve's November 03 policy update.

Pound Sterling looks set to consolidate below the previous week's highs against the Euro as traders take money off the table ahead of this week's pivotal Bank of England meeting.