Eurusd Forecast Cibc

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Eurusd Forecast Cibc

Eur/Usd To Reach 1.22 In 2026

CIBC forecast reveals that EUR/USD will be near 1.22 by the end of Q2 2026. A quick look at the EUR/USD shows that it is going through some selling pressure. But the long-term view of EUR/USD remains Euro positive and highlights greenback weakness.

According to CIBC, a shift in the EUR/USD trend will come after more data from the US data release. They are of the view that the data will reveal a deterioration of the US economy.

Us Economy To Weaken Further

So, the CIBC believes that the weakness in the US economy will become evident very soon. At the same time, the Eurozone economy will be slightly better, which will push the EUR/USD pair higher.

The CIBC also added that the US government shutdown will have far-reaching consequences. It will affect the data collection, which means we might not have a clear economic picture in the coming months.

In addition, the Federal Reserve may decide to put a temporary pause on the rate cuts in December. So, this would provide some relief to the US Dollar, but it will be short-lived.

Meanwhile, there are also political risks in Japan and the Eurozone. So, these things will also undermine the appeal of the Japanese Yen (JPY) and the Euro (EUR) in the next few months.

But if we talk about the long-term outlook, then the odds are in favor of the Euro. In the next 6-7 months, the US economy is expected to further weaken. The key drivers for this will be high tariffs, political uncertainty, and loss of the Fed's independence.

So, all of these things will undermine the appeal of the US Dollar. As a result, the path of least resistance for EUR/USD is towards 1.22.

The bank also highlighted that manufacturing stresses are no longer just limited to the US. In fact, it is now expanding into other economies, and it will also impact the major currencies.

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