Jupiter Asset Management Predicts 20% Euro Gain by 2026

Jupiter Asset Management has projected that the euro to US dollar exchange rate will rise by 20% by next year, reaching levels not seen in over a decade. This optimistic outlook is driven by the anticipated surge in government spending, which is expected to stimulate economic growth in the eurozone. The company's fund managers are preparing to increase their long positions in anticipation of this upward trend.

The forecast suggests that the eurozone's economic recovery, bolstered by increased government expenditures, will be robust enough to support a significant appreciation of the euro against the US dollar. This move by Jupiter Asset Management reflects a broader sentiment among investors who are optimistic about the eurozone's economic prospects. The decision to increase long positions indicates confidence in the euro's strength and the potential for further gains in the currency market.

The forecast also underscores the importance of government spending in driving economic growth and its impact on currency values. As the eurozone continues to recover from the economic downturn, investors are closely monitoring developments and adjusting their portfolios accordingly. The anticipation of a 20% increase in the euro to US dollar exchange rate highlights the potential for significant gains in the currency market, making it an attractive investment opportunity for those looking to capitalize on the eurozone's economic recovery.

This optimistic view is further supported by the recent announcement from Germany, which plans to increase its spending on defense and infrastructure. This development has made the outlook for the euro even more positive, leading to a search for increased long positions. The forecast suggests that by the beginning of 2026, the euro could reach 1.30 US dollars, with the European Central Bank likely to have completed its rate cuts and the Federal Reserve just beginning to ease its monetary policy. By the end of next year, the euro is expected to rise from its current level of 1.15 US dollars to 1.40 US dollars.

“As Europe finally begins to recover and the US economy weakens, the euro will be boosted,” said the manager of the Jupiter Strategic Absolute Return Bond Fund. Many factors that have strengthened the US are now shifting towards Europe. The manager's outlook has become more optimistic since Germany announced its plans to increase defense and infrastructure spending in March. The manager is now seeking to increase long positions in anticipation of this trend.