Home›Forex›Major Pairs›Commerzbank expects EUR/USD to recover after Iran conf…

Commerzbank expects EUR/USD to recover after Iran conflict eases

The bank projects EUR/USD at 1.18 by mid-2027 and 1.19 by end-2027, citing weaker US rate expectations and a Fed independence shift.

Reported · Written up by our desk · Major Pairs

Commerzbank chief economist Dr. Jörg Krämer expects the euro to resume gains versus the US dollar after the Iran conflict eases, with EUR/USD set to grind higher over subsequent quarters, according to an FXStreet write-up of the bank’s view.

Krämer links potential EUR strength to what he describes as eroding Federal Reserve independence, falling US rate expectations, and the dollar being significantly overvalued on a purchasing power parity basis.

The update includes Commerzbank’s updated forecast, calling for EUR/USD to reach 1.18 by mid-2027 and 1.19 by end-2027 as the recovery path continues.

As context for the FX market backdrop, the same FXStreet material notes EUR/USD was trading around 1.1540 at the time of writing, with traders still seeking clearer direction as Middle East developments remain in focus.

Latest closeEUR/USD 1.122 ▼0.3%

More like this

Sources