EUR/USD to recover to 1.20 by Q1 2027
The euro is expected to rally against the US dollar, driven by rate spread dynamics.
A narrowing gap between US and European yield expectations will support the pair.
The 10-year German bund yield fell 8bps in June, reflecting reduced inflation risk.
EUR/USD is forecast to reach 1.1600 by Q3 2026 and 1.1800 by Q4 2026