ABN AMRO’s Bill Diviney expects a general weakening of the US dollar, but sees slightly less improvement in the EUR/USD rate after reviewing the ECB’s outlook and taking into account election risks in France and the US. With the ECB likely to make one more rate hike and the Fed remaining more dovish than the markets, ABN AMRO currently forecasts the EUR/USD rate at 1.18 in 2026 and 1.23 in 2027.
The euro is gaining strength hampered by electoral risk
“We continue to expect broader weakness in the U.S. dollar.”
“However, we have made a slight adjustment to our EUR/USD forecasts due to two events.”
“Together, these factors point to slightly less growth in the EUR/USD rate this year and next.”
“Our new year-end forecast is 1.18 for 2026 and 1.23 for 2027.”
(This article was created with the assist of an artificial intelligence tool and has been reviewed by an editor.)
