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

06 Oct 2025, 07:00 UTC
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At a Glance

Goldman Sachs is raising its EUR/USD forecasts, reflecting a more optimistic view on the euro's performance against the dollar. This shift suggests that market confidence in the eurozone's economic fundamentals may be strengthening, allowing for a more bullish outlook on the currency pair.

Key Takeaways

  • 01Goldman Sachs has raised its EUR/USD forecasts significantly for upcoming periods.
  • 02Market confidence in the eurozone's economic resilience appears to be growing among some key analysts.
  • 03There is a divergence between the more bullish targets from Goldman Sachs and the conservative targets established by other firms.

Full Analysis

What the desk is arguing

Goldman Sachs has revised its EUR/USD forecasts upward, with targets now set at 1.1800 for March 2026, 1.2100 for June 2026, and 1.2500 for December 2026. This adjustment aligns with recent trends showing increasing support for the euro amidst shifting economic indicators in the eurozone, including enhanced growth prospects and stable inflation rates.

This revision implicitly challenges the stance of firms maintaining more conservative targets, indicating that a portion of the market may still underestimate the euro's potential in the near term. As the eurozone continues to show resilience against global economic challenges, Goldman appears to capitalize on this positive momentum.

Where it sits in our coverage

The median consensus target for EUR/USD across firms stands at 1.1800 for March 2026, with a range from 1.1700 to 1.2000. Goldman Sachs’ new target for the same tenor mirrors this central forecast, showing alignment with consensus yet diverges notably with its more aggressive targets for later periods.

Specifically, the following firms have set their December 2026 targets as follows:

How other firms see it

Other firms have mixed reactions to Goldman Sachs' upbeat revisions. While ING maintains a target of 1.1900 for March 2026 and shows a bullish outlook, MorganStanley appears more skeptical with a lower forecast of 1.1600 for December 2026.

  • Aligned firms:
  • ING: 1.1900 (Mar26)

Market Implications

The upward revision in forecasts could lead to increased market demand for the euro against the dollar, potentially influencing trading strategies and capital flows into euro-denominated assets. If the euro continues to strengthen as suggested, traders may adjust their positions accordingly, reinforcing the bullish sentiment in the FX market.

From the original

Goldman Sachs: Rolling our EUR/USD forecasts higher investingLive

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