EUR/USD Forecast: UBS Reveals Compelling 1.20 Prediction For 2025 - Bitcoin World

What the desk is arguing

The desk maintains a bullish outlook on EUR/USD, supported by a consensus median target of 1.2200 for December 2026. With predictions from multiple banks indicating sustained appreciation for the Euro against the Dollar, UBS's projection aligns with a growing expectation that the Eurozone's economic recovery will gain traction over the next couple of years.

Moreover, the recent revisions from various firms highlight an eagerness to reevaluate targets upwards, signaling confidence among analysts that the Euro will strengthen significantly. This optimism challenges bearish perspectives that could foresee potential headwinds stemming from geopolitical tensions or economic slowdowns, which may not materialize as strongly as some anticipate.

Where it sits in our coverage

Our current consensus target for EUR/USD is 1.2200 for December 2026, with a tight range among analysts priced between 1.1700 and 1.2500. This is consistent with UBS's longer-term target, providing credence to the analysis that a return to strength in the Euro may be in the works, given the ongoing adjustments in the global economy.

Prominent firms have set their respective targets as follows: - JPMorgan: Dec26 1.2000 - Goldman: Dec26 1.2500 - Deutsche Bank: Dec26 1.2500

How other firms see it

Opinions on EUR/USD keep diverging with some firms maintaining a more cautious stance. Morgan Stanley has set a lower Dec-26 target of 1.1600, suggesting caution amidst uncertainties in the Eurozone's economic recovery.

Conversely, several firms align with the bullish outlook, including Goldman and Deutsche Bank, both projecting targets of 1.2500 for December 2026, indicating a strong sense of optimism among these analysts as they anticipate favorable conditions for the Euro.