Foreign exchange strategists at Westpac have revised their Euro (EUR/USD) and Pound Sterling (GBP/USD) forecasts higher against the US Dollar, citing structural US risks and stronger-than-expected growth in Europe and the UK.
The bank now sees EUR/USD at 1.16 and GBP/USD at 1.36 by late 2026, up from current levels near 1.12 and 1.32, respectively.
Euro And Pound Sterling Forecasts Lifted As Dollar Weakness Deepens: Westpac
“The US dollar slipped into a 98.2–101.0 range... this move could be interpreted as predicting the US is simply returning to the pack after an exceptional period,” says Elliott Clarke, Head of International Economics at Westpac.