Yu Shin Bank: The market has fully absorbed the policy differences between European and American central banks, making it difficult for European and American markets to rise significantly.

Analysts at the Investment Research Institute of Yuxin Bank stated in a report that the euro to dollar exchange rate is unlikely to further rise significantly, as the market has fully digested the interest rate expectations of the Federal Reserve and the European Central Bank. The analysts pointed out that the forward interest rates for the full year of 2026 have already taken into account relevant expectations - including the European Central Bank maintaining interest rates unchanged, and the Federal Reserve lowering rates by approximately 150 basis points. They further stated, "Combining our latest baseline scenario forecasts for the Federal Reserve, we currently set the target exchange rate for the euro to dollar at 1.20 in the fourth quarter of 2025, and 1.23 in the fourth quarter of 2026."