EUR/USD Sees Room for Further Upside Amid Hawkish ECB and Softer Dollar

Singapore-based United Overseas Bank (UOB) Group's foreign exchange strategists see room for the euro to rise against the US dollar, targeting a level of 1.1800. The bank's technical analysis indicates that the EUR/USD pair will trade with an upward bias, with the next target set at 1.1800.

The euro has gained ground in recent weeks due to a combination of factors, including a more hawkish stance from the European Central Bank (ECB) and improving economic data from the eurozone. Meanwhile, the US dollar has faced pressure from expectations that the Federal Reserve may be nearing the end of its tightening cycle.

UOB's forecast aligns with a broader trend among major banks that see further upside for the euro. Analysts point to the narrowing interest rate differential between the US and the eurozone, as well as a potential recovery in European manufacturing and services activity.