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Sign InAmid persistent pressure on the single currency, Goldman Sachs has revised its 6 and 12-month EUR/USD exchange rate forecasts downward to 1.12. This significant cut follows previous targets of 1.18 and 1.20 respectively. According to reports, the revision is driven by the Euro losing over 2% in June and its subsequent failure to establish a meaningful recovery during July trading.
The move by Goldman Sachs comes as the Eurozone faces mixed economic signals, with EU retail sales growing by only 0.2% in July 2026, missing the 0.3% forecast per market data. While German factory orders showed a surprise rebound of 1.9%, the broader divergence in monetary policy expectations and economic resilience continues to favor the US Dollar over its European peer.
Looking ahead, traders are focusing on a scheduled speech by ECB President Christine Lagarde for clues on future interest rate trajectories. Additionally, upcoming German Industrial Production data will be closely monitored as a key catalyst that could influence EUR/USD sentiment in the near term.