EUR/USD Slumps to 1.15 as Dollar Gains Momentum

The Euro to US Dollar exchange rate (EUR/USD) suffered a near-1% weekly decline, finishing Friday at 1.1486.

ING warns of a possible test of 1.1400, while Crédit Agricole's December forecast is lower at 1.13, extending to March 2027 before a gradual recovery later that year.

The Federal Reserve raised rates by 25 basis points to 3.75%-4.00%, with its 4.1% median projection for end-2026 implying another quarter-point increase.

Despite ECB tightening, ING sees scope for higher short-term US yields to support the Dollar, particularly if incoming data and energy prices encourage markets to price an October hike.