EUR/USD to trend lower over the course of the year – Danske Bank
Source Fxstreet
Economists at Danske Bank expect the EUR/USD pair to move downward throughout the rest of the year.
EUR/USD to reach 1.0500/1.0400 within a 6/12M horizon
We still expect EUR/USD to trend lower over the course of the year.
Despite the recent positive risk appetite, driven by the global rally in equity markets, which strengthened EUR/USD for most of February, we ultimately view the equity rally as a net positive for the USD, as the catalyst for the rally is centred in the US market, attracting flows to the USD.
Overall, we believe the US economy is in a stronger position relative to the Euro Area based on factors such as relative terms of trade, real rates, and relative unit labour costs.
We forecast EUR/USD to reach 1.0500/1.0400 within a 6/12M horizon.
Disclaimer: For information purposes only. Past performance is not indicative of future results.
Recommended Articles
Natural Gas sinks to pivotal level as China’s demand slumpsNatural Gas price (XNG/USD) edges lower and sinks to $2.56 on Monday, extending its losing streak for the fifth day in a row. The move comes on the back of China cutting its Liquified Natural Gas (LNG) imports after prices rose above $3.0 in June. It
Natural Gas price (XNG/USD) edges lower and sinks to $2.56 on Monday, extending its losing streak for the fifth day in a row. The move comes on the back of China cutting its Liquified Natural Gas (LNG) imports after prices rose above $3.0 in June. It
ECB Policy Outlook for 2026: What It Could Mean for the Euro’s Next MoveWith the ECB likely holding rates steady at 2.15% and the Fed potentially extending cuts into 2026, EUR/USD may test 1.20 if Eurozone growth proves resilient, but weaker growth and an ECB pivot could pull the pair back toward 1.13 and potentially 1.10.
With the ECB likely holding rates steady at 2.15% and the Fed potentially extending cuts into 2026, EUR/USD may test 1.20 if Eurozone growth proves resilient, but weaker growth and an ECB pivot could pull the pair back toward 1.13 and potentially 1.10.
Financial Markets 2026: Volatility Catalysts in Gold, Silver, Oil, and Blue-Chip Stocks—A CFD Trader's OutlookGet a comprehensive financial market 2026 outlook exploring key economic drivers, volatility catalysts in gold, oil and stocks, and what the evolving economic outlook means for cfd trading strategies and risk management on global markets.
Get a comprehensive financial market 2026 outlook exploring key economic drivers, volatility catalysts in gold, oil and stocks, and what the evolving economic outlook means for cfd trading strategies and risk management on global markets.
Discover the best Japanese stocks to buy, including AI semiconductor leaders, Buffett-backed trading houses, and undervalued Japan stocks benefiting from corporate reforms and yen trends.
The US Treasury Department said on Wednesday that it will buy back more of its longer-term bonds, in an effort to curb a sharp increase in borrowing costs, the Wall Street Journal reported.
Related Instrument
