EUR/USD extended its climb this week, with the bulk of published research leaning bullish on the euro into year-end and beyond.
Analysts pointed to softer short-dated US rates, record foreign inflows into eurozone debt and equities, and diversification away from the dollar as key supports. Several researchers flagged near-term targets of 1.17 by end-September and 1.18 by year-end, with a break above 1.1700 potentially opening the path toward 1.1790. Longer-horizon projections from separate research shops stretched to 1.18 into 2027 and as high as 1.21–1.22 by 2028, citing narrowing rate differentials, stabilizing euro-area confidence, and a gradual USD reallocation trend.
Not everyone agreed. One thread warned the pair looks 2.5–3% overvalued on regression models, with European gas prices and drought-driven inflation as downside risks. A separate contrarian view argued Europe would quietly welcome a weaker euro for export competitiveness, particularly amid recent US intervention flows.