Euro-Dollar 2023 Target 1.1700, Deutsche Bank Looking For Opportunities To Buy EUR/USD - Exchange Rates UK

What the desk is arguing

The desk maintains a bullish stance on EUR/USD, supported by consensus forecasts indicating a gradual appreciation of the Euro. Current market dynamics, coupled with fiscal policies in the Eurozone, are expected to drive the currency pair higher, targeting levels up to 1.2200 by December 2026.

This outlook is reinforced by several banks projecting similar gains in the Euro against the Dollar. The desk implicitly rejects the notion that the Euro will struggle to maintain its strength against the Dollar amid potential economic pressures, emphasizing the resilience of the Eurozone economy instead.

Where it sits in our coverage

In our coverage, the current consensus target for EUR/USD is 1.2200 by December 2026, with a range spanning from 1.1700 to 1.2500. This aligns with Deutsche Bank's target of 1.2500 for the same period, underscoring a common belief among analysts that the Euro will continue to strengthen against the Dollar over the next several years.

Notable target projections from other firms include: - JPMorgan: Dec26 target at 1.2000 - Goldman: Dec26 target at 1.2500 - Morgan Stanley: Dec26 target at 1.1600

How other firms see it

There is general alignment among major firms regarding the bullish outlook for EUR/USD, with many predicting similar upward movements over the forecast horizon.

• JPMorgan projects 1.2000 for Dec26, affirming a positive sentiment.
• Goldman is particularly optimistic, anticipating a target of 1.2500.
• BofA holds a slightly more conservative stance but still estimates a rise to 1.2200 by Dec26.

Conversely, Morgan Stanley has set a lower target of 1.1600, indicating a more cautious approach to the Euro's strength going forward.