CitiGroup Euro To Dollar Forecast: EUR/USD Can Slide Towards 1.10 - Exchange Rates Org UK

What the desk is arguing

The desk sees potential for the EUR/USD to approach 1.10, largely reflecting concerns over Eurozone economic stability. With ongoing inflationary pressures and fiscal challenges, the Euro might struggle against a resilient Dollar bolstered by anticipated Federal Reserve policies.

Supporting this view, the recent consensus among various firms suggests a divergence from current levels, with several forecasters adjusting their targets lower. The desk implicitly rejects the notion that the Euro can maintain strength amid these challenges, pointing towards a need for a more conservative outlook.

Where it sits in our coverage

Currently, our consensus target for EUR/USD stands at 1.1800 for March 2026, reflecting a median forecast among the leading banks. This positions the market sentiment notably higher than CitiGroup's more pessimistic outlook of 1.10, which indicates a divergence between some analysts and our aggregated research.

Key firms providing similar forecasts include:

• JPMorgan: Dec-26 target at 1.2000
• Goldman: Dec-26 target at 1.2500
• DeutscheBank: Dec-26 target at 1.2500

How other firms see it

In contrast, certain firms align more closely with CitiGroup's outlook, particularly those anticipating further Euro weakness in the near term. This highlights a potential bifurcation in market sentiment regarding the Euro’s resilience.

Relevant firms include:

• BofA: predicting a Dec-26 target of 1.2200
• Barclays: expecting a Dec-26 target of 1.2100

Other firms such as MorganStanley maintain a more bullish perspective, with a target of 1.2300 for Dec-26, reflecting the ongoing debate over the Euro's trajectory in the coming months.