EUR/USD forecast as Goldman Sachs predicts a return to dollar slide - TradingView

What the desk is arguing

The analysis from Goldman Sachs, predicting a downturn in the dollar, is shaping expectations for a stronger euro moving forward. This forecast underscores a potential shift in market dynamics, where factors such as monetary policy and inflation trajectories are likely to favor the euro's appreciation against the dollar.

Supporting this thesis, multiple firms are positioning their forecasts for EUR/USD higher across different tenors, with targets suggesting a consensus alignment around 1.22 for December 2026. The implication of this view is that the current market pricing may undervalue the euro, indicating room for upward adjustments as market conditions evolve.

Where it sits in our coverage

Currently, our consensus target for EUR/USD sits at 1.2200 for December 2026, reflecting a range that is consistent with Goldman Sachs' upward revision to 1.2500. This suggests a converging outlook among major institutions, positioning the euro favorably relative to the dollar.

Specific mentioned targets from other firms include: - JPMorgan: Dec26 1.2000 - Deutsche Bank: Dec26 1.2500 - Morgan Stanley: Dec26 1.1600

How other firms see it

While Goldman Sachs leads the charge with its bullish projection, several firms share similar sentiments regarding the euro's prospects. Both Deutsche Bank and MUFJ are advocating for a higher valuation of the euro, indicating a broader consensus on euro strength.

Conversely, Morgan Stanley presents a more cautious target, aligning with a less optimistic view at 1.1600 for December 2026, diverging from the prevailing bullish trends set by other firms. Overall, this highlights an emerging divergence in the market that could influence trading strategies moving forward.