Euro Forecast

EUR/USD buoyant but facing downside risks as rebound could fade in wake of ECB decision.

The Pound-to-Euro exchange rate could cement its grip on the 1.18 handle this week.

The Pound to Euro exchange rate (GBP/EUR) has broken through a major resistance level suggesting the technical outlook has improved markedly.

"We remain bullish on GBP as the USD-positive environment is usually also benefitting GBP" - Danske Bank.

The Pound might be in a lose-lose situation with investors who see prospective Bank of England rate hikes as supportive and a headwind, but Credit Suisse stick with a bullish forecast.

Nordic lender and investment bank Danske have lowered their Euro to Dollar exchange rate forecast.

EUR/USD steadier but vulnerable to bearish market and faces a battle ahead to hold above 200-wk moving-average. 

GBP/EUR supported at 1.17, may see new highs if BoE’s inflation stance continues to inspire GBP.

The Euro-to-Dollar exchange rate is forecast to outperform into 2022 as the Eurozone starts to deliver above trend economic growth and the anti cyclical Dollar retreats once more.

EUR/USD suppressed by gravity near 2021 low, but top forecaster suggests downside is limited

The Pound-to-Euro rate drew bargain hunters when month-end market turbulence pushed it briefly below 1.16 last week, but over the coming days it could set the stage for new 2021 highs to be achieved toward year-end aided by Sterling's undervaluation and the increasingly supportive outlook for Bank of England interest rates.

Foreign exchange analysts at Goldman Sachs have notified clients recently they have revised higher their GBP/EUR forecasts and see 1.19 being possible by the end of the first quarter of 2022.

Analysis from TD Securities details such a 'hawkish' outcome as being one where the median dot shows rate hikes starting in 2022 with as much as 150bp of tightening by end-2024.

EUR/USD seen to remain vulnerable while below 1.1825.

SEB - a leading Nordic corporate bank - have confirmed they expect the British Pound to maintain an upside bias against the Euro.

The Pound-to-Euro rate edged higher despite Sterling being one of the poorer performing major currencies last week and so may remain buoyant over the coming days.

"We continue to expect GBP to strengthen in coming months" - Citi.

The Euro-to-Dollar exchange rate entered the new week testing a technical support level at 1.18 after its recent rebound was stifled by a cocktail of domestic and international factors.

GBP/EUR supported at 1.16 as corrective pressure wanes, struggles to overcome 1.17 without lift from UK data.

EUR/USD eyeing 1.18 amid third corrective setback but any QE cutback from ECB could revive appetite.