JP Morgan Research revised its EUR/USD targets lower and now see the pair heading towards 1.14 by year-end (from 1.20).

"We have pivoted to a bearish-EUR/USD forecast for the first time in a year. Late 2025 and early 2026 saw the dollar on the backfoot, with a second round of Fed easing to support the labor market and US equity momentum / flows turning decisively away from the US. In March, the conflict short-circuited that dollar-bearish environment through a vol spike, deleveraging and ToT improvement. But now, there is evidence that the dollar is gaining support from more organic US-specific developments," JPM notes.

"This skews dollar positive, and EUR/USD negative by extension - we’ve lowered our 2H 26 target range to 1.13-1.15," JPM adds.