Nordea Eurusd Forecast

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Nordea Eurusd Forecast

Nordea EUR/USD Forecast For 2027

According to Nordea, the EUR/USD pair will touch 1.22 in 2027. This is a bullish forecast and was issued after accounting for the geopolitical tension and the general state of the world.

A quick look at the EUR/USD pair reveals that it is currently trading at multiple months low. However, the net support for the US Dollar will fade away, and the Euro will emerge as the winner.

EUR/USD Can Touch 1.26 By End 2027

Nordea also added that the gains in the US Dollar are short-term as the US fundamnetals doesn't support a stronger currency.

Based on all of this, Nordea has forecasted the EUR/USD to touch 1.22 by the end of 2026 or the ealy 2027. Nordea also mentioned that the EUR/USD pair will climb further to 1.26 by the end of 2027.

The bank commented that the high energy prices are supporting the US Dollar. On top of that, covering of the short positions has also helped the US Dollar.

But all of these factors will not be enough to sustain the bullish move in the US Dollar. Nordea continues to hold a negative view on the US Dollar, and this view is based on the fundamentals.

The bank thinks that the US fiscal profile is a source of concern for the overall market. Also, the USA has high debt levels and a high budget deficit, which cannot be sustained.

In fact, the US's current account deficit is showing no signs of slowing down and is actually widening. So in the long run, it will also affect the US Dollar's exchange rate against other currencies.

Nordea also pointed out that the US Dollar is still very strong when we look at it from historic terms. So, this has also increased the chances of net selling in the US Dollar.

All of this has created the ideal environment for the Euro to gain ground against the US Dollar. Also, the USA's position as a world leader has started to show cracks, and it will also have an impact on the US Dollar.

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