Eurusd Will Climb Next Year

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Eurusd Will Climb Next Year

Eur/Usd Will Climb To 1.24 By 2026

According to RBC Capital Markets, the EUR/USD is likely to climb towards 1.24 by the end of year 2026. That's a very bullish forecast given that the EUR/USD is still trading below the 1.20 handle.

The long-term support for the EUR/USD is near 1.15, while the resistance is 1.20. But based on the RBC's forecast, the pair will likely break its resistance at 1.20 and end the year 2026 around 1.24.

Us Dollar Will Depreciate

They also added that the US Dollar might make an upside in the short term. But the long-term trend for the US Dollar remains bearish.

If we look ahead, the Euro is also likely to face difficulties because of the Eurozone's economy and fiscal policies. But, the apparent weakness of the US Dollar will be enough to send the Euro higher.

RBC noted that the US economy is likely to experience damage because of the US shutdown. At the same time, the US Federal Reserve is expected to lower the rates once again this year.

However, it will not be a surprise for the markets as the interest rate cuts are already priced in. So, the US Dollar will not face much selling in the short term.

But in the long term, the RBC is still bearish on the US Dollar due to a number of factors. The first one is the fear that the Fed's pace of rate cuts will increase in 2026. This will also force the global investors to increase their hedging and move away from the US Dollar.

Also, the typical cycle of the US Dollar shows that it will likely decline by 20% to 40% before stabilizing. So, there's enough room for downside when it comes to the US Dollar against the Euro.

RBC also added that strong growth will return to the Eurozone in the next year. So, that's also a plus point which will push the Euro higher.

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