StanChart Sees Softer Dollar, Boosts Euro Forecast to 1.16

Standard Chartered has upgraded its euro outlook, forecasting EUR/USD to reach 1.16 by the close of Q2 2025 — a sharp rise from its previous 1.06 target. The bank also expects the euro to maintain that level through year-end, compared to an earlier forecast of 1.04.

The adjustment comes as StanChart signals a broader theme of dollar weakness across major currencies. Analysts cite a growing "risk-on" environment favoring currencies tied to stronger economic cycles over traditional safe-haven flows.

Even with tariff relief and equity market resilience, the U.S. dollar has shown limited strength, prompting StanChart to predict further softening as investors reposition.

Still, risks remain. The bank notes that President Trump, seeking to stabilize revenue expectations tied to a new fiscal package, could push for swift tariff resolutions. Advisers reportedly caution that adding extra risk to U.S. assets without clear incentives could unsettle markets further.