ING lowers its EUR/USD outlook to 1.13 for Q4 2026 and Q1 2027, citing a France-related risk premium that threatens to push the pair toward a test of 1.110.
ING has revised its EUR/USD forecast downward to 1.13 for Q4 2026 and Q1 2027 due to a persistent risk premium associated with French political and fiscal stability. The currency pair is currently facing a challenging environment for bulls, with analysts anticipating a potential test of the 1.110 support level as French bond market volatility continues to weigh on the euro.
ING has lowered its forecast to 1.13 for both the fourth quarter of 2026 and the first quarter of 2027.
The Euro is facing pressure due to a persistent risk premium linked to France, which could be exacerbated by further sell-offs in French bonds.
ING has revised its EUR/USD forecast downward to 1.13 for late 2026 and early 2027, citing ongoing political uncertainty in France. Strategist Francesco Pesole warns that a persistent risk premium on French bonds could trigger further weakness, potentially testing the 1.110 support level.
ING lowered its forecast due to a persistent risk premium associated with French bonds, which creates a challenging environment for the Euro.
ING strategists suggest that the pair may face a test of the 1.110 level due to current market pressures.