According to the Quarterly Global Outlook from UOB Group’s Global Economics & Markets Research, EUR/USD is expected to drift lower to the 1.15 area early in 2022.

Key Quotes

“Due to  the longer term monetary policy divergence,  we keep to our bearish view  of EUR/USD  and  update  the point forecast to 1.16 in 4Q21, 1.15 in 1Q22, 1.14 in both 2Q and  3Q22.”

“The latest forecasts are about 100-200  pips higher  compared  to our last review at the start  of September.  This is in acknowledgement  of the stabilization  in yield differentials observed in the month.”