JP Morgan bullish EUR/USD view, sees 1.20 in This fall and 1.22 in 1H 2025. However downgrades yen.

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J.P. Morgan has revised down its near-term outlook for the Japanese yen, citing political uncertainty,

  • expects USD/JPY at 146 within the third quarter, in contrast with its earlier forecast of 141
  • projections are for the pair to ease again to 142 by year-end and 139 by the second quarter of 2026

Amongst G10 currencies, the yen was the one one downgraded. The financial institution stays constructive on the euro, maintaining forecasts unchanged at

  • 1.20 for EUR/USD in This fall
  • and 1.22 within the first half of 2025, with a possible catalyst seen in softer U.S. information or a Federal Reserve pivot.

Strategists proceed to suggest being quick the U.S. greenback in opposition to the euro, commodity currencies and the yen as a defensive hedge, whereas staying chubby Scandinavian FX versus the euro on valuation grounds. They continue to be bearish on sterling given fiscal and development issues

  • favours emerging-market currencies, with its strongest conviction in EMEA

This text was written by Aaron Cutchburt at investinglive.com.

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