UBS raised its forecast for the EUR/USD pair

UBS raised its EUR/USD forecast, predicting the euro will strengthen against the US dollar, with EUR/USD targets through March 2026 now at 1.10, 1.12, 1.12 and 1.14, up from previous forecasts of 1.06, 1.08, 1.10 and 1.12 respectively.

“We expect the US economy to be hit hardest by the new tariffs and see the Fed easing policy more than the European Central Bank (ECB),” UBS FX strategists wrote in a note to clients.

USD/CHF forecast was cut to 0.86, 0.85, 0.85 and 0.83 from 0.90, 0.88, 0.86 and 0.85 over the same period. GBP/USD targets were raised to 1.31, 1.33, 1.33 and 1.34 from 1.26, 1.29, 1.31 and 1.33.

However, the EUR/CHF forecast remained unchanged at around 0.95, and the EUR/GBP forecast was only slightly adjusted: the March 2026 price target was increased from 0.84 to 0.85.

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