EUR/USD Forecast: Macquarie Predicts Euro Bottom, Signals Bullish Turn for Currency Markets

In a surprising shift, Macquarie analysts have recently declared that the bottom is in for the EUR/USD exchange rate, marking a potential turning point for the euro against the dollar.

This forecast, originally reported by Investing.com, suggests a newfound optimism for the European currency amidst a backdrop of global economic uncertainty.

EUR/USD Historical Context: A Volatile Journey

The EUR/USD pair has faced significant volatility over the past decade, influenced by diverging monetary policies between the European Central Bank (ECB) and the Federal Reserve.

Historically, the euro struggled during periods of economic crisis in the Eurozone, notably during the 2010-2012 debt crisis, when it reached lows near 1.05 against the dollar.

More recently, the pair dipped below parity in 2022, a rare event driven by energy crises and aggressive Fed rate hikes, setting the stage for Macquarie’s latest bullish outlook.

Why Macquarie Sees a Euro Rebound

Macquarie’s optimism hinges on Europe’s increasing assertiveness, particularly its commitment to boosting defense spending, as noted in their recent analysis.

This shift could strengthen the region’s economic stability and investor confidence, providing a much-needed lift to the euro’s value.

Beyond policy changes, geopolitical factors and a potential softening of U.S. monetary tightening could further support the EUR/USD pair’s upward trajectory.

Impact on Global Markets and Crypto Investors

For cryptocurrency investors, movements in major fiat pairs like EUR/USD often influence market sentiment, as capital flows between traditional and digital assets are interconnected.

A stronger euro could encourage European investors to diversify into risk assets like Bitcoin, potentially driving up crypto demand in the region.

Looking ahead, if Macquarie’s forecast holds, we might see a ripple effect across forex and alternative investment markets, reshaping global capital allocation.