Euro Forecast

GBP/EUR could lose value over the next few days according to a new short-term technical analysis, although where it ends the week will likely rest with the outcome of Thursday's briefing from the European Central Bank.

EUR/USD starts new week softer, but near-term technical momentum is positive.

EUR/USD could be set to probe above 1.18.

GBP/EUR may struggle to advance beyond 1.1700.

This is as good as it gets for those wanting a stronger British Pound show new forecasts from Bank of America.

The EUR/USD decline is being tipped to extend by the foreign exchange analysis team at Nordic based lender and international financial services provider Danske Bank.

The Euro-to-Dollar exchange rate has been quick to rebound following recent global market turbulence but has prospective sellers already waiting in the wings. 

Investment strategists at international financial services giant MUFG have called time on their call for Pound Sterling to appreciate in value against the Euro, fearing an extension of the recent move lower in the UK currency.

A trend of appreciation in the British Pound against the Euro looks set to remain intact provided the divergence between central bank policy in the UK and EU extends and a multi-month bull trend in stock markets remains intact, say analysts.

The Euro-to-Dollar rate entered the new week near to 1.18 after narrowly escaping new 2021 lows but may struggle to get up further momentum over the coming days and will also be among the most vulnerable currencies to any recovery by the greenback.

The Pound-to-Euro exchange rate came off the boil ahead of the weekend and could now struggle for fresh momentum over the coming days as Sterling navigates a minefield of UK economic data littering the path ahead, although it remains well supported above the nearby 1.17 level.

Foreign exchange analysts at Goldman Sachs say they are upgrading their forecasts for the British Pound following the August policy update from the Bank of England, although they will retain a cautious stance on the UK currency.

The Euro-to-Dollar exchange rate entered the August month close to four-week highs and with scope to retest if-not reclaim the 1.19 handle over the coming days now the Eurozone economy has shifted into second gear and the coronavirus has entered retreat across large parts of the continent.

The Pound-to-Euro exchange rate has made an enthusiastic bid for the ground above 1.1730, a level which it could get the better of again this week if Sterling continues catching the eye of institutional punters, though sustainability of the move would depend on the outcome of Thursday’s Bank of England (BoE) policy decision.

The Euro has weathered recent market turbulence better than many other currencies but may see its resilience tested again this week by the Federal Reserve (Fed), which dominates the currency market agenda ahead of Friday’s eagerly-awaited Eurozone GDP data for last quarter.

The Pound-to-Euro exchange rate suffered a setback last week and now risks finding itself sidelined into a consolidation range spanning the gap between 1.1750 and levels as low as 1.1550, pending clarity on the domestic coronavirus situation and progress of UK’s economic recovery.

The Euro-to-Dollar exchange rate outlook hangs in the balance ahead of Thursday’s all-important policy update from the European Central Bank, which is pivotal to whether the single currency can sustain itself above nearby support at 1.1777, or if it succumbs to a steadily advancing greenback.

Strategists at CIBC Capital Markets are targeting a continuation in the decline of the Euro-to-Dollar exchange rate (EUR/USD), saying fundamentals continue to favour the Greenback.

The Euro-to-Dollar exchange rate was ebbing from levels above 1.18 in the penultimate session of the week but is likely to probe below there over the coming days, and could see levels as low as 1.1705, according to new targets from Credit Suisse.

Foreign exchange analysts at ING Bank N.V. have announced a review of their U.S. Dollar forecasts and told clients they have turned more constructive on the currency.