TREE NEWS reports: Citigroup lowered its forecast for the euro against the dollar, pointing to a range of risks in Europe and elevated oil prices. The bank did not disclose the new target level in the material. The revision reflects concerns over the outlook for the eurozone economy and energy costs.
Citi cuts EUR/USD forecast, citing European risks and high oil prices
A forecast revision without a disclosed target is less a call than a signal about how banks are framing European risk right now: energy costs and a soft growth outlook are doing the work, not dollar-side strength. For corporates and cross-border treasurers, the more relevant read is that FX strategists are building euro weakness into their base case, which tends to feed through to hedging conversations before it shows up in spot. Whether other banks follow with similar revisions, and whether oil stays elevated, is the open question.
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