EUR/USD Surges Past Three-Month Highs Amid US Treasury Market Turmoil
The Euro to Dollar exchange rate (EUR/USD) surged past three-month highs of 1.17 as the US Treasury market experienced turmoil and softer economic data led to a reassessment of the dollar's outlook.
Washington's decision to step up purchases of longer-dated government debt initially pushed yields lower, but raised broader questions over demand for US assets and whether attempts to contain borrowing costs could ultimately weaken the currency.
Danske Bank sees near-term gains for EUR/USD, but maintains a bearish medium-term view with a 12-month forecast of 1.12.
UBS is backing EUR/USD gains to 1.20 by March 2027.