Exchange Rate Forecasts

The Euro to Dollar exchange rate (EUR/USD) is hurtling towards parity as the FX market isn't close to fully appreciating the 'Trump Trade'.

One of Germany's largest banks thinks the British Pound is set for another strong year against the Euro. However, a key risk is an economic slowdown following Rachel Reeves' budget.

City Index analyst Fawad Razaqzada says a drop to $1.25 looks increasingly likely for the Pound to Dollar exchange rate (GBP/USD).

Shahab Jalinoos at UBS says the regime shift in the U.S. does bode for a strong Dollar, but he says tactical considerations suggest the Euro should end the year higher against the Dollar than at current levels.

The Australian Dollar is amongst the top picks at Morgan Stanley for 2025.

According to research from JP Morgan, the Euro could be set to move to parity against the Dollar in the coming quarters.

The British Pound is described as "a diamond in the rough," by Goldman Sachs in their new year-ahead forecast publication, in which a new set of post-election forecast targets suggest solid gains in the coming months.

The Canadian Dollar can give back some recently lost ground to the Pound in the coming days.

The Pound remains a 'buy on dips' against the New Zealand Dollar.

The Pound and Australian Dollar are evenly matched, but we could see the Aussie eke out some gains this week.

The Euro to Dollar exchange rate (EUR/USD) looks to be forming a base above 1.05, but stay wary of further declines.

Pound Sterling has come under notable pressure against the Dollar as markets prepare for the second Trump administration, but we think relief is in store this week.

Pound Sterling could lose further value against the Euro in the coming week if UK inflation and PMI data undershoot expectations.

"A bit more juice in sterling," says Kit Juckes, head of FX research at Société Générale.

NZD looks set to fall against the EUR and GBP next year, however, it will advance against USD as the Trump euphoria fades.

The Euro to Dollar exchange rate (EUR/USD) could be on course to hit the 1:1 marker, according to an increasing number of analysts. Others say such talk is overblown.

GBP/CAD faces a significant test this week as a key technical indicator will be tested. Failure will open the door to a more pronounced pullback.

GBP/NZD is in a multi-month trend of appreciation, but this week, we could see some losses as a short-term pullback plays out.

GBP/AUD is forecast to maintain an upward bias in the coming five days. Risks include UK and Aussie labour market data releases and U.S. inflation midweek.

Rewind to this time last week and things were looking up for the Euro to Dollar exchange rate (EUR/USD). Now, we are forecasting further losses in the coming days.