Eurusd Forecast Deutsche Bank

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Eurusd Forecast Deutsche Bank

EUR/USD Will Be Near 1.25 By End 2026 - Deutsche Bank

Deutsche Bank has forecasted that the EUR/USD pair will be near 1.25 by the end of 2026. For now, the EUR/USD pair is still facing tough resistance levels ahead before it can eventually reach 1.25 by the end of this year.

Deutsche Bank added that the short to medium term range for EUR/USD is 1.15 - 1.20. But the pair will eventually get out of that range and hit 1.25 by the year's end.

Two More Rate Cuts Expected From The US Fed

This forecast from the Deutsche Bank is a sign that they are not that bullish on the US Dollar. In fact, Deutsche Bank is bearish on the US Dollar for 2026, as evident from this bullish forecast for EUR/USD.

The US currency was under a lot of pressure as everyone was saying that a dovish Fed chair would be nominated. But, Kevin Warsh is nominated for the next Fed chair, and it has eased a lot of market fears.

Despite this positive development, Deutsche Bank maintains its bearish forecast for the US Dollar. According to them, the underlying fundamentals do not support a stronger US Dollar in 2026.

They added that the US is no longer regarded as the high-yield in the global markets. On top of that, the growth rate is also not that high in the USA, which will ultimately affect the US Dollar.

In fact, there's a good chance that investors will increase their hedge ratios when it comes to the US assets. This move will be to protect the capital, but it will hurt the US Dollar.

Looking ahead, the key element for the EUR/USD pair will be the policy of the Federal Reserve. According to Deutsche Bank, more rate cuts from the US Federal Reserve are expected.

Deutsche Bank thinks that at least 2 more rate cuts from the Fed will come this year. Based on this, Deutsche Bank has concluded that the Dollar will lose against the US Dollar.

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