Guests and journalists observe a facsimile of the twenty euros banknote of Europa series at the end of its unveiling ceremony during which ECB president Mario Draghi signed a facsimile, in the ECB headquarters, Frankfurt, Germany, 24 February 2015.

The euro could strengthen to $1.16 throughout 2020 thanks to an economic recovery in Europe, lower political risks, and no significant policy change from the European Central Bank (ECB), currency strategists at Nomura bank said Friday.

The euro, used in 19 European countries, was trading at $1.11 on Friday. The euro lost value against the dollar throughout 2019, trading lower on news about international trade, tepid economic data and perceived political risks. In September, the euro dropped to $1.09 as investors questioned the economic prospects of Germany, changes in the Italian government and whether the ECB would be announcing further monetary stimulus.

As a new year begins, strategists at Nomura believe that the euro will make up for some of last year's losses. "We remain constructive on (the) euro into 2020, as a cyclical upturn should keep the single currency supported," the bank said in a research note Friday.

Nomura said European data should pick, the ECB is not expected to alter its current policies, there is room for some positive reforms, capital outflows are falling and there are lower political risks.

"We expect EUR/USD to trade at current levels and approach 1.16 by end-2020, with risks to the upside if the U.S. Presidential election leads to a USD negative surprise," strategists at Nomura also said.