Bank of America’s November global fund manager survey shows most investors expect the euro to end 2026 stronger but still within familiar territory. Nearly half (48%) see EUR/USD finishing in a $1.10–$1.20 range, roughly in line with today’s 1.1587 level. Another 30% expect a push higher into the $1.20–$1.30 band. Very few investors foresee a break of the extremes: just 2% expect sub-$1.00 levels and 2% see a rally beyond $1.30.Views on valuation have moderated. Forty-five percent say the US dollar is overvalued, down from 50% in October, while the share viewing the euro as undervalued has fallen to 13% from 17% last month.
This article was written by Eamonn Sheridan at investinglive.com.
💡 DMK Insight
Investors are betting on a stronger euro by 2026, and here’s why that matters now: With nearly half of fund managers expecting the EUR/USD to settle between $1.10 and $1.20, this sentiment suggests a stable outlook for the euro against the dollar. Given the current level of 1.1587, traders should consider this range as a potential trading zone. If the euro strengthens as anticipated, it could impact related assets like European equities and commodities priced in euros. Additionally, the 30% of respondents predicting a rise to $1.20–$1.30 indicates a bullish sentiment that could trigger upward momentum if key economic indicators, such as inflation or interest rate changes, align favorably. However, it’s worth noting that such optimism could be overextended if geopolitical tensions or economic downturns arise, leading to volatility in the forex market. Traders should keep an eye on the upcoming economic data releases and central bank announcements that could influence the euro’s trajectory. Watch for any shifts in sentiment that could push the EUR/USD towards these anticipated levels, especially around key economic reports or ECB meetings.
📮 Takeaway
Monitor the EUR/USD closely; a break above 1.20 could signal a stronger bullish trend, while a drop below 1.10 may indicate a reversal.






