JPMorgan and other major banks have lowered their expectations for the euro, with the euro expected to fall more than 3% against the US dollar in the next year

JPMorgan Chase, Morgan Stanley, and Bank of New York Mellon predict that the euro will fall by over 3% to around 1.10 over the next year, with the euro hitting a one-year low this month, in contrast to its five-year high of 1.20 at the beginning of the year. Federal Reserve Chairman Kevin Walsh has released a tough anti inflation stance, European Central Bank President Lagarde has stated a moderate path, the Iran war has pushed up oil prices and strengthened demand for the US dollar, and the one-year risk reversal indicator has fallen to its most bearish level since March 2025. The Chief Foreign Exchange Strategist of Societe Generale stated that the upward trend of the euro has ended, and Bank of America has lowered its year-end forecast from 1.20 to 1.15 and maintained a neutral judgment.