Euro: Range trading intact near recent lows against US Dollar – UOB
The EUR/USD pair is currently trading at 1.1253, maintaining a choppy range amidst a softening US Dollar, as reported by UOB. Given the prevailing market conditions, it's significant to observe that the overall sentiment on both EUR and USD remains neutral. The emphasis on range trading highlights the uncertainty investors face, which could present buying opportunities near the recent lows.
Where it sits in our coverage
Our consensus EUR/USD target stands at 1.1700 (median across firms), with forecasts ranging from 1.1200 at TMGM to 1.2000 at RBC. UOB's current outlook supports a slightly more bearish view than the consensus, targeting 1.1536 by March 2026.
How firms align
While UOB is holding a more conservative stance with a target of 1.1536 for March 2026, Rabobank and RBC are more optimistic, both projecting a target above 1.1700. For detailed insights, refer to /research/rabobank and /research/rbc.
What the data shows
Recent revisions indicate that UBS has positioned itself on the higher end in terms of future expectations, forecasting EUR at 1.2000 by March 2026. This reflects a growing divergence in outlook as seen in /research/eurusd-ecb-rate-path-2026-10-23.
Key takeaways
- 01EUR/USD sits at 1.1253, showing modest outperformance against the USD amid a soft dollar.
- 02Choppy price action suggests investors remain uncertain about direction.
- 03Watch for volatility triggers as we approach central bank meetings.
- 04Keep an eye on the recent lows for potential buying opportunities.
Market implications
Traders should monitor EUR/USD for movements around the 1.1200 support level, with this area potentially acting as a buy zone. Additionally, upcoming central bank announcements may create volatility, influencing the near-term trading range.
Risks to this view
A reversal in this outlook could occur if the USD strengthens unexpectedly due to surprising economic data or hawkish shifts from the Fed. Key economic reports, particularly related to inflation or employment, could serve as catalysts.
Sentiment by currency
USD~EUR~JPY~GBP~Composite USD score: +0.00
Sources & References
How we cover this story
Other coverage on this pair
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