Eurusd To Reach Higher Danske

last updated on

Eurusd To Reach Higher Danske

EUR/USD To Touch 1.27 By Early 2027

According to the latest EUR/USD forecast from Danske Bank, the pair will rise to 1.27 by early 2027. A quick look at the current levels of EUR/USD shows it is a bullish forecast and highlights the US Dollar's weakness in the long run.

In 2025, the EUR/USD pair gained almost 13%, which also signifies long-term US Dollar weakness. Based on the latest forecast from Danske Bank, it seems that the weakness will continue well into early 2027.

Euro To Gain Ground In 2026 And 2027

Danske Bank added that the EUR/USD will close the year 2026 near 1.23. Beyond that, the pair will rise towards 1.27 in the early few months of 2027.

As for the monetary policy, Danske Bank believes the US Fed will introduce 2 more rate cuts in 2026. So, even that points towards US Dollar weakness, and the Euro will likely take advantage of that.

The bank also forecasted that the deposit rate set by the ECB will remain at 2.00% for the rest of 2026 and 2027. So, the yield difference will also support the Euro in 2026.

However, some analysts believe that the rate cuts from the Fed are already priced in. So, if this turns out to be true, then the US Dollar selling will be limited in scope.

Meanwhile, the Danske Bank is of the view that upcoming rate cuts are not priced in, and it will ultimately support the US Dollar. There are also talks of a potential recession in the US economy in 2026, which could also undermine the US Dollar.

The Danske Bank commented that the strong prices of European assets will also help underpin the Euro. Also, the US institutions will continue to experience a loss of confidence, which will also not support the dollar.

And if we see increased political pressure on the US Federal Reserve, that could also have long lasting impact on the greenback. In fact, a move like this might even start to chip away at the US Dollar's status as the reserve currency across the world.

Trending Stories