Woofun AI reports that JPMorgan Chase, Morgan Stanley, and BNY Mellon have lowered their euro forecasts, projecting a decline of more than 3% to approximately 1.10 over the next twelve months. The currency has already reached a one-year low, contrasting sharply with its five-year high above 1.20 earlier in the year.

Diverging monetary policies drive this outlook. Federal Reserve Chair Powell’s hawkish stance on inflation contrasts with ECB President Lagarde’s moderate approach, while rising oil prices from the Iran conflict strengthen dollar demand. Natixis stated the euro's uptrend has ended, comparing current pressures to the 2022 Russia-Ukraine impact. Bank of America revised its target to 1.15 but maintains a neutral view.