EUR/USD Forecast: UBS Predicts Powerful Surge to 1.20 As Dollar Weakens in 2025 - Binance
At a Glance
UBS's forecast of EUR/USD reaching 1.20 in 2025 suggests a significant depreciation of the US dollar amidst a strengthening Eurozone economy. This view aligns with existing predictions from various banks, indicating a consensus that the euro will likely appreciate against the dollar over the next couple of years.
Key Takeaways
Full Analysis
What the desk is arguing
UBS's prediction for a powerful surge of the EUR/USD to 1.20 in 2025 is supported by a general expectation of dollar weakness as interest rate adjustments play out. The anticipated recovery in the Eurozone is set to enhance the euro's appeal, paralleling the dollar's expected decline as the US navigates potential economic headwinds.
Current market sentiment reflects this outlook, with consensus projections placing the EUR/USD significantly higher than its current spot at 1.1500. Notably, many institutions are increasingly aligning their targets toward this bullish trajectory for the euro against the dollar, underscoring confidence in the euro's relative strength moving forward.
Where it sits in our coverage
Our internal consensus for EUR/USD suggests a target of 1.2200 by December 2026, with varying forecasts from peers indicating a range from 1.1700 to 1.2500. This consensus aligns with UBS's view, reinforcing the notion that the EUR/USD could strengthen considerably in line with their forecast.
Notable targets from key firms include: - JPMorgan: Dec26 target at 1.2000 - Goldman: Dec26 target at 1.2500 - Deutsche Bank: Dec26 target at 1.2500
How other firms see it
Several firms are in agreement with UBS's stance, forecasting strength in the euro against the dollar. For instance, ING and Morgan Stanley also have bullish projections for the EUR/USD, signifying a widespread expectation of euro appreciation.
Conversely, BofA remains comparatively cautious, suggesting a lower target of 1.2200 for December 2026, indicating a more tempered outlook on euro strength amidst potential volatility.
Market Implications
Should EUR/USD rise towards 1.20 as UBS predicts, it could lead to shifts in investment strategies towards Euro-denominated assets, impacting foreign exchange flows and potentially driving higher demand for euro assets across global markets.
EUR/USD — All Desk Targets
| Firm | Stance | YE 2026 |
|---|---|---|
ING | Bullish | 1.1800 |
UOB | Bullish | 1.1800 |
Rabobank | Bullish | 1.1800 |
From the original
EUR/USD Forecast: UBS Predicts Powerful Surge to 1.20 As Dollar Weakens in 2025 Binance
Related speeches
4 itemsEUR/USD to reach 1.20 level as UBS forecasts weaker dollar ahead - Investing.com Nigeria
UBS's recent call for the EUR/USD to approach the 1.20 level is gaining traction as it forecasts a weaker dollar, supported by broader tightening across global monetary policies. This perspective aligns with a growing consensus among several major banks that expect the euro to appreciate against the dollar over the next year.
EUR/USD to reach 1.20 level as UBS forecasts weaker dollar ahead - Investing.com
UBS's recent forecast positions the EUR/USD at 1.20 as the dollar is expected to weaken. This forecast aligns with a general bullish consensus toward the euro, underpinned by recent signals of a dovish shift from the Fed and improvements in Eurozone economic data.
More from GOOGLE NEWS · EUR/USD
5 items- GOOGLE NEWS · EUR/USD
Euro To Dollar Forecast: ING Keeps 1.18 Target As EUR/USD Holds 1.1670 - Exchange Rates UK
- GOOGLE NEWS · EUR/USD
UBS raises EUR/SEK price target on low-yielding krona concerns - Investing.com India
- GOOGLE NEWS · EUR/USD
AUD/JPY Price Forecast: Rally extends further to near 114.30 as hawkish RBA bets accelerate - tmgm.com
- GOOGLE NEWS · EUR/USD