Turning bullish on EUR/USD - JPMorgan - Investing.com

What the desk is arguing

JPMorgan is now projecting an upward trajectory for EUR/USD, revised targets of 1.1800 for March 2026 and 1.2000 for June 2026 signal their confidence in the euro's performance. The firm anticipates that macroeconomic indicators will favor the euro, particularly in light of expected adjustments to monetary policies that may widen interest differentials favorably for the eurozone.

This bullish sentiment implicitly counters the more cautious outlooks from certain firms that suggest potential headwinds stemming from geopolitical risks and U.S. economic resilience. These counterviews highlight the divergence in market perspectives regarding the euro's potential upside, emphasizing specific risks that could impede its ascent.

Where it sits in our coverage

Currently, the consensus median target for EUR/USD stands at 1.1800 for March 2026, closely matching JPMorgan's revised forecast. Other firms also echo this optimism, with the target range spanning from 1.1700 to 1.2000, reflecting a consensus that is largely supportive of a potential euro appreciation against the dollar.

Several notable firms further bolster this viewpoint with their published targets for December 2026, including: - Goldman: 1.2500 - Deutsche Bank: 1.2500 - Morgan Stanley: 1.1600

How other firms see it

The bullish stance from JPMorgan is corroborated by other institutions like Goldman and Deutsche Bank, which also project higher targets for the euro. These alignments suggest a professional consensus is forming around EUR/USD strengthening.

Conversely, some firms maintain a more cautious outlook. For instance: - BofA (targeting 1.2200) reflects skepticism regarding euro appreciation against a robust dollar. - Morgan Stanley presents a more mixed sentiment, targeting a lower 1.1600 for December 2026.

These different expectations highlight the ongoing debate within the market regarding the interplay of economic factors affecting both currencies.