Eurusd Forecast Wells Fargo

last updated on

Eurusd Forecast Wells Fargo

Eur/Usd Forecast For 2026 - Wells Fargo

An earlier forecast from Wells Fargo for EUR/USD had a target of 1.19 by the year-end. Similarly, the target for the 2026 end was 1.13.

But now, Wells Fargo has changed its forecast and is expecting some strong performance from the EUR/USD. As per the forecast, the EUR/USD will peak near 1.22 by Q2 2026. And by the end of 2026, the EUR/USD pair will be around 1.20.

Eur/Usd Will End 2026 Near 1.20

So, the bank expects the EUR/USD to peak before the end of 2025 and for the most part of 2026. And by the end of next year, the EUR/USD will retreat just a little bit.

This adjustment in the forecast by Wells Fargo comes after a look at the Federal Reserve's stance on rate cuts. According to Wells Fargo, the US Federal Reserve is likely to cut rates at least 2 times before the end of this year.

Wells Fargo is also forecasting at least 2 rate cuts by the US central bank during the 1H 2026. If we look around, most analysts are only looking forward to just 1 more rate cut in 2026.

So in that sense, Wells Fargo has taken a different approach, and that's why they are now bullish on the Euro. In addition, they also believe that most of the central banks will adopt a very cautious approach.

As for the European Central Bank, Wells Fargo forecasts one more rate cut. So, this will result in a yield difference that's beneficial for the Euro but not so much for the US Dollar.

So in the year 2026, the US Dollar is expected to get weaker against the Euro and even other major currencies. In addition, the US economy will also get weaker next year, and that will also weigh on the US Dollar.

Wells Fargo added that the US economy will pick up pace again during the latter half of 2026. As for the US Central Bank, the rates will not dip below the 3.25% threshold.

Trending Stories