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FX BANK FORECAST · COVERAGE
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Aggregated year-end forecasts, scenario shifts, and curated analyst notes from 38 institutional desks. No promotion.
FX BANK FORECAST · COVERAGE
Aggregated year-end forecasts, scenario shifts, and curated analyst notes from 38 institutional desks. No promotion.
Fed Governor Collins has stated that the possibility of another rate hike remains on the table before the end of 2026, highlighting the ongoing flexibility of monetary policy in response to economic conditions. This perspective adds weight to existing discussions around future interest rate movements, as market observers decipher signals of tightening amid persistent inflationary pressures. The significance of her comments lies in the anticipation surrounding the Fed’s next policy moves, especially as inflation data continues to dictate the central bank's actions.
Our consensus EUR/USD target sits at 1.075 (median across 8 firms), with Goldman at the upper bound (1.12) and BofA at the lower (1.04). Collins' remarks support a hawkish sentiment that resonates well with the upper third of our coverage, in line with firms like JPMorgan and ING.
JPMorgan, with a target of 1.10 for March 2026, shows alignment with Collins's view on rate potential. Conversely, BofA's more cautious stance, with a target of 1.04, suggests a less aggressive outlook on future hikes. See our internal reports for detailed firm positioning.
Recent forecasts have indicated varying confidence levels in the Fed's interest rate trajectory, with forward-looking data also suggesting that inflationary pressures remain influential. Analysts should monitor upcoming data releases closely for more clarity on these dynamics.
How firms align with this view
Aligned with the headline view
Contrary positioning
Key takeaways
Market implications
Traders should closely monitor the upcoming inflation data release on [insert date], as a strong reading could reinforce the likelihood of further tightening from the Fed. Watch for EUR/USD levels around 1.075 to assess market positioning towards the dollar strength fueled by rate expectations.
Risks to this view
A significant decline in inflation data or signs of economic slowdown could force a reassessment of the Fed's tightening path. Should inflation fall below 2%, it would undermine the case for additional hikes, prompting a potential sell-off in the USD.
Sentiment by currency
USD+EUR JPY GBPComposite USD score: +0.65
How we cover this story