Bullish Forecast For Eurusd

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Bullish Forecast For Eurusd

Bullish Forecast For Eur/Usd - Ing

ING has issued a bullish forecast for EUR/USD with a price target of 1.20. According to ING, the pair will reach this bullish target before the start of the next year.

For now, the EUR/USD is hovering in the 1.18 - 1.19 range, but ING believes that will change in the coming months. They are mostly bearish on the US Dollar outlook due to the Fed's policy decisions.

More Rate Cuts Before Year End

The bank also suggested that any move towards the 1.17 level should be seen as an opportunity to buy the dip. For the long term, the target remains near the 1.20 handle.

In the US, the central bank has cut the rates and is likely to continue doing so for the next few quarters. Naturally, that's bad news for the US Dollar, but it will definitely prop up the economy.

According to the projections, we may see an additional 2 rate cuts from the US before the end of 2025. But for the year 2026, only one rate cut is expected.

By the end of 2026, a total of 5 rate cuts will be made by the US Federal Reserve. Now, this whole story is bearish for the US Dollar.

The US Federal Reserve is also very much worried about the US labor market. So, this is also a stimulus for the Fed to speed up the rate cuts as it will stabilize the economy.

ING believes that the US Federal Reserve is now shifting its focus towards the labor market. At the same time, it means the central bank is now moving away from its long-term target of 2% inflation rate.

Even the US government is of the view that the Federal Reserve should speed up its pace of rate cuts. And that could certainly happen once a new Fed chair is appointed in the middle of next year.

Almost everyone agrees that Trump will appoint someone who agrees with his policy of low rates. So, just 1 more rate cut in the year 2026 isn't set in stone, and it could definitely change.

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