Eurusd Forecast For One Year

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Eurusd Forecast For One Year

Eur/Usd Forecast For End 2026 - Socgen

SocGen's forecast for EUR/USD shows that it will be near 1.14 by the end of 2026. Given the recent exchange rate of EUR/USD, the forecast from SocGen is a little bearish.

quick look at the EUR/USD shows that it is at multi-month lows already. This comes mainly due to the recovery in the US Dollar, which was under excessive selling pressure for quite a while.

Eur/Usd Will Be Near 1.14 By End 2026

The bank believes that the Euro will go through selling pressure in 2026. They also added that the Euro will fail to sustain the gains and will likely retreat to even lower levels against the US Dollar.

They commented on how the interest rate differentials will help the Euro in the medium term. According to SocGen, the Federal Reserve will cut the rates while the ECB will stay steady in the coming months.

So in the first few months of 2026, the EUR/USD is likely to move towards 1.20. But the end of 2026 forecast for EUR/USD remains at 1.14.

The medium-term forecast goes in favor of the Euro as the US economy will weaken further. At the same time, the Eurozone's growth outlook is expected to improve.

But we must also understand that the resilience of the US economy has improved. Meanwhile, there are now doubts about the Eurozone economy.

So, the Euro will fail to sustain the gains and will crumble under pressure. However, SocGen's forecast for the US Dollar is slightly bullish despite the expected rate cuts from the US Federal Reserve.

Also, the investors are likely to increase their US asset holdings as part of the hedging strategy. So, that's also something that will keep the US Dollar selling under control.

If SocGen's forecast turns out to be true, it would mean the Euro will lose ground despite having the interest rate differential in its favor.

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