Eurusd Forecast Yearly Cibc

last updated on

Eurusd Forecast Yearly Cibc

EUR/USD Will Be Near 1.19 By End 2026 - CIBC

The EUR/USD pair has been in a long-term uptrend since 2025. Even now, EUR/USD has maintained its bullish trend despite the short-term strength of the US Dollar.

According to the latest forecast from CIBC, the EUR/USD pair has the potential to go even higher. The forecast shows the EUR/USD pair can reach 1.19 by the end of 2026.

The US Dollar Is Overvalued

The reason for this bullish forecast is based on the lower US yields and the expectations of a weaker US Dollar. CIBC added that the US Dollar will lose traction throughout 2026.

Also, the geopolitical tensions around the world and the weak economic situation in the USA will also pull the US Dollar lower. Amidst all of this, inflation is set to start moving higher again, which is also not good news for the US Dollar.

The bank added that the US Dollar is also overvalued at the current levels. So, when the USD moves lower, it will go in favor of the EUR.

Also, the economic impact will make it difficult for the US Federal Reserve to keep the yields higher. In turn, this will move the yield difference in favor of the European currencies during the rest of 2026.

In fact, CIBC thinks the European Central Bank will have more reasons to raise the interest rates. This will be done to combat inflation in the Eurozone.

On the other hand, the Federal Reserve is not expected to hike rates in 2026. On the contrary, CIBC is still backing 2 more rate cuts from the US Fed in 2026.

To conclude, the interest rate difference will go in favor of the shared currency (EUR). At the same time, the US Dollar will lose its traction because of the Fed's dovish policy.

By the end of 2026, CIBC eyes the EUR/USD pair near 1.19. Beyond that, the key levels for the EUR/USD pair are 1.20 and then 1.22.

Trending Stories