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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.
Goldman Sachs has revised its EUR/USD forecasts upward, reflecting heightened optimism about the Euro's performance against the Dollar. This adjustment aligns with a broader trend of increasing price targets among other major banks, suggesting a more positive outlook for eurozone economic stability.
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.
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:
This demonstrates a converging sentiment among banks, with Goldman’s view residing on the more aggressive side of the spectrum.
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:
This divergence illustrates the varying degrees of confidence in both the eurozone economic recovery and its implications for EUR/USD performance.
How firms align with this view
Aligned with the desk view
Contrary positioning
Key takeaways
Market implications
The increased forecasts from Goldman Sachs and other banks suggest a potential shift in market positioning as traders may seek to capitalize on a stronger Euro. This could lead to adjustments in Euro-denominated assets and impact US dollar liquidity as investors balance their portfolios.
Risks to this view
The main risks to this bullish outlook include geopolitical tensions, economic disruptions in the eurozone, and an unexpected hawkish pivot from the Federal Reserve. Such factors could undermine the Euro's relative strength against the Dollar.
| Firm | Stance | YE 2026 |
|---|---|---|
Rabobank | Bearish | 1.1000 |
ING | Bullish | 1.1300 |
MUFG | Neutral | 1.1200 |
All 31 desk targets for EUR/USD
How we cover this story
USD resilience despite US political uncertainty suggests safe-haven demand remains the dominant driver; EUR/USD breakdown below 1.1200 month-range may accelerate if risk sentiment deteriorates.
EUR/USD upside capped by continued dollar cash rotation despite US tech weakness; Treasury correlation reassertion limits euro tactical strength.
EUR/USD breaks below 1.1200 technical level ahead of data events; watch for Eurozone retail sales and US nonfarm payroll reactions.
USD strength contingent on NFP data; break of 102.10 DXY would confirm momentum toward EUR/USD 1.1100 support.
EUR/USD spot sits 2.69% below the 31-firm median Dec-26 target of 1.145, with a 0.135 dispersion range signalling deep disagreement on the path ahead.
EUR/USD spot sits 2.19% below the 31-firm median Dec-26 target of 1.15, with a 0.135 dispersion range signalling deep disagreement on the path ahead.
EUR/USD spot at 1.1191 sits 2.68% below the 31-firm median Dec-26 target of 1.15, exposing a consensus that remains structurally bullish despite tape underperformance.
31 investment banks see EUR/USD at 1.1469 by Dec 2026
View the live EUR/USD forecastStanChart |
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