EUR in the spotlight: latest news

The EUR/USD weekly forecast shows a slight increase due to geopolitical risks and concerns surrounding the Federal Reserve, alongside a weakening of the US dollar.

Geopolitical tensions significantly influenced market movements this week, negatively impacting the value of the US Dollar (USD).

The Pound Sterling concluded a challenging week on a strong note, providing valuable insights through news, forecasts, exchange rate data, and transfer comparisons.

The euro experienced a decline in European trading on Friday against a range of global currencies, marking a brief pause following a significant increase in the previous session.

The current exchange rate for the Euro to US Dollar (EUR/USD) is 1.1732. Although it has dipped slightly today, it remains close to the upper end of its recent trading range. UBS forecasts the exchange rate to reach 1.20 by 2026.

Economists maintain a steady outlook for the euro zone's growth, inflation, and interest rates through 2026, according to a recent Reuters poll conducted by Indradip Ghosh in Bengaluru.

The US dollar is showing slight weakness as markets approach the weekend, while both the Pound and the Euro are positioning themselves to test significant market levels.

The Pound-to-Euro exchange rate has bounced back toward 1.1500, driven by reduced tensions in Greenland, which have boosted global risk appetite. This resurgence has helped counterbalance the strength of the euro.

After a decline on Wednesday, EUR/USD bounced back on Thursday, closing in positive territory. However, the currency pair is struggling to maintain its upward momentum.

EUR/USD is trading above the 50-day EMA, and traders are closely monitoring the 1.1850 level for a potential breakout, as the Euro remains within a specific range.

Economists have maintained a stable outlook for euro zone growth, inflation, and interest rates for 2026, keeping their forecasts largely unchanged.