- April 27, 2026
- Posted by: EWGFX
- Category: news
The Euro to Dollar exchange rate (EUR/USD) has slipped back towards 1.1700, with markets unsettled by rising energy prices and ongoing uncertainty surrounding Middle East developments.
While expectations of European Central Bank tightening and Federal Reserve easing support a stronger medium-term outlook for the Euro, near-term direction remains dominated by geopolitical risks and oil market volatility.
EUR/USD Forecasts: ECB watch
Danske Bank forecasts that the Euro to Dollar (EUR/USD) exchange rate will strengthen to 1.22 on a 12-month view.
Danske notes the high degree of uncertainty over the Iran situation with the scope for notable short-term FX fluctuations including EUR/USD.
EUR/USD retreated to around 1.17 during the week amid fresh concerns over energy prices as the Strait of Hormuz remained blocked.
Danske commented; “Near-term risks to our forecasts are closely tied to geopolitical developments regarding the Iran-escalation.”