Goldman Sachs: Rolling our EUR/USD forecasts higher - investingLive

What the desk is arguing

Goldman Sachs' decision to roll its EUR/USD forecasts higher indicates a bullish stance on the Euro as we move further into 2026. The revised targets, with March 2026 set at 1.1800 and December 2026 at 1.2500, underscore a trend where institutional confidence is building on the Euro's resilience amid a potentially stabilizing economic landscape in Europe.

Supporting this view, other major banks, such as ING and Deutsche Bank, have also raised their EUR/USD targets, reinforcing the idea that the prevailing economic conditions may favor the Euro against the Dollar in the coming months. The implicit counterargument to Goldman’s bullishness is the risk of unexpected geopolitical or macroeconomic shocks that could derail this trend, particularly given recent volatility in global markets.

Where it sits in our coverage

The current consensus target for EUR/USD sits at 1.2200 for December 2026, indicating a strong expectation of euro appreciation but still lower than Goldman’s newly set target of 1.2500. The spread among bank targets is tightening, with firms generally adopting more optimistic views compared to their previous forecasts.

Specifically, firms have set the following December 2026 targets:

• JPMorgan: 1.2000
• Barclays: 1.2100
• Deutsche Bank: 1.2500

This demonstrates a converging sentiment among banks, with Goldman’s view residing on the more aggressive side of the spectrum.

How other firms see it

Several firms in the FX space show alignment with Goldman Sachs' bullish outlook on EUR/USD. In particular, Deutsche Bank and ING have also made upward revisions to their targets, which indicates a collective belief in Euro strength.

However, some firms remain cautious or have differing views. For instance:

• Bank of America: 1.2200 (Dec-26)
• Morgan Stanley: 1.1600 (Dec-26)

This divergence illustrates the varying degrees of confidence in both the eurozone economic recovery and its implications for EUR/USD performance.