Political turmoil and a growing backlash against Brussels is set to weaken the bloc's currency in 2017, according to a survey of economists, strategists and fund managers by investment firm Hargreaves Lansdown.
And a member state is set to leave the bloc within the next five years, half of those polled believe - up from 40 per cent in the same survey last year.
The majority of respondents predicted the pound will strengthen against the euro during 2017 to sit above €1.20 by the end of the year.
Sterling is currently at €1.17 against the eurozone currency.
Elections in France and Germany in 2017, where populist parties have grown in strength, are seen as key risks to the euro.
The ongoing economic woes of Italy and Greece could also cause a rupture in the currency.
Fiona Cincotta, market analyst at City INdex, said: "It looks like European politics is set to be the big story for 2017.
"In addition to elections in France and Germany, there is also the Netherlands and possible snap elections in Italy and Greece; there is a real possibility that around 75 per cent of the euro region could be in play in 2017.
"Following Brexit and Trump, if 2016 taught us something, it is that you can’t discount anything.
"All this political risk in Europe will play out to a backdrop of Brexit and Trump taking office; we know the actors, we know the story but we just don’t know how it will play out."
In an effort to smooth the eurozone economy, the European Central Bank (ECB) has confirmed it will continue to pump billions of extra cash in the eurozone during 2017.
The money-printing programme alongside negative interest rates is set to help keep the euro weak in 2017.
Chris Saint, currency analyst at Hargreaves Lansdown, said: “Exchange rates are determined by the interaction of a diverse range of political and economic factors, including interest rates, inflation and growth, all of which are up for grabs in 2017, which is likely to make for lively currency markets in the coming year.”
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