ING Bank: French fiscal concerns may weigh on the euro, while the Federal Reserve’s hawkish stance supports the dollar

⑴ ING believes that concerns over France's finances may continue to weigh on the euro until the new year.⑵ Meanwhile, the Federal Reserve's hawkish stance on inflation is expected to keep supporting the US dollar.⑶ The institution forecasts that the euro-to-dollar exchange rate will stay within the 1.10 to 1.15 range over the coming months.⑷ However, it still maintains a bullish outlook for this currency pair in 2027.⑸ Overall, the euro is under short-term pressure from both French fiscal concerns and dollar strength, while a strengthening trend is expected in the medium term. Future developments to watch include France’s fiscal situation and the Federal Reserve’s policy trajectory.