EUR/USD experienced renewed upward momentum on Thursday, reversing part of its recent losses and moving back towards the 1.1050 zone, driven by fresh selling pressure on the US Dollar (USD).
Meanwhile, the US Dollar Index (DXY) left behind four days in a row of gains and succumbed to the fresh downward bias in response to softer-than-expected prints from the weekly US labour market and Producer Prices in August. So far, the index appears to have met a decent resistance around 101.80.
In addition, further improvement in the risk complex also weighed on the Greenback amidst the move higher in US and German yields.
Further strength in the single currency also came after the European Central Bank (ECB) lowered its policy rates at its meeting on Thursday, as broadly anticipated, although it did not provide any forward guidance regarding future steps.
In fact, the ECB has decided to moderate monetary policy restrictions due to the Governing Council's assessment of the inflation outlook and underlying dynamics. The bank did not explicitly hint at a rate reduction in October but noted that domestic inflation remained high.
At her subsequent press conference, President Christine Lagarde argued that the diminishing effects of monetary policy restrictions should support the economy, with inflation predicted to fall to 2% by 2025. However, she did not commit to any actions in October and emphasized that the policy would remain restrictive as long as necessary.
Overall, if the Fed proceeds with additional or larger rate cuts, the policy gap between the Fed and the ECB could narrow over the medium to long term, potentially supporting EUR/USD. This is particularly likely, as markets anticipate two more rate cuts from the ECB this year.
In the longer term, however, the US economy is expected to outperform the European economy, which could limit any prolonged weakness in the dollar.
Finally, according to the CFTC report for the week ending September 3, speculators (non-commercial traders) have increased their net long positions in the Euro (EUR) to the highest levels since January, while commercial traders (such as hedge funds) have raised their net short positions to multi-month highs amid a notable increase in open interest.
Interested in weekly EUR/USD forecast? Our experts make weekly updates forecasting the next possible moves of the Euro-US Dollar pair. Here you can find the most recent forecast by our market experts:
FAQs
EUR/USD Daily Outlook
While retreat from 1.1200 might extend lower, rally from 1.0665 is in favor to continue as long as 1.0947 resistance turned support holds. Above 1.1104 minor resistance will bring retest of 1.1200 first. Break there will target 1.1274 high next.
Is the euro expected to go up or down? ›
While some experts anticipate the euro will trade more or less in the same ranges as in 2024, others suggest that the pair may grow to 1.2100 and higher. Long-term forecasts suggest both negative and positive scenarios. A negative scenario assumes the pair may fall below 1.0000 and reach 0.9960 by the end of 2027.
Will EUR USD go up or down? ›
The EURUSD increased 0.0008 or 0.07% to 1.1018 on Thursday September 12 from 1.1010 in the previous trading session. The Euro US Dollar Exchange Rate - EUR/USD is expected to trade at 1.10 by the end of this quarter, according to Trading Economics global macro models and analysts expectations.
What is the EUR USD prediction for 2024? ›
As of the beginning of Q3, the service's EUR/USD forecast for 2024 expected the pair to close the year at 1.06 with a 1.08 high. Long Forecast's EUR/USD price prediction for 2025 had the pair potentially reaching a maximum price of 1.09.
Will the euro overtake the dollar? ›
Although Europe's money today accounts for no more than a quarter of global reserves, compared with a nearly two-thirds share for the dollar, the euro could nonetheless surpass the greenback within as few as 10 years, according to one well-publicized econometric forecast (Chinn and Frankel, 2008).
What is the euro rate forecast for 2024? ›
For 2024, WalletInvestor analysts predict a price range of 89 – 90 INR, with a gradual appreciation of the euro against the rupee. The average year-end forecast is 91-92 INR. In 2025, LongForecast expects the EUR/INR rate to reach 93–94 INR, with further euro strengthening anticipated.
What is the future rate of USD EUR? ›
EUR/USD Contracts
| Month | Last | Chart |
|---|
| Nov 24 | 1.11085s | Q / C / O |
| Dec 24 | 1.11200s | Q / C / O |
| Jan 25 | 1.11305s | Q / C / O |
| Mar 25 | 1.11540s | Q / C / O |
20 more rowsThe rise in the dollar price of the Euro means a fall in the euro price of dollars because the appreciation of one currency will depreciate another currency and vice-versa.
What is the strongest currency in the world? ›
Kuwaiti Dinar
The Kuwaiti Dinar is renowned as the strongest currency in the world. Introduced in 1961, it has maintained a commanding presence due to Kuwait's substantial oil reserves, which account for a significant portion of its economic output.
Is Eurusd buy or sell today? ›
The technical rating for the pair is buy today, but don't forget that markets can be very unstable, so don't stop here. According to our 1 week rating the EURUSD shows the buy signal, and 1 month rating is buy.
Highlights and Key Points: USD to PHP Forecast 2024-2030
The year 2024 is projected to start with a slight increase in the exchange rate, eventually climbing to around ₱ 59.54 - ₱ 61.96 by the year's end.
Where will the Euros be in 2024? ›
Three-time winners Germany hosted the 17th UEFA European Championship in 2024. EURO 2024 was Germany's first major tournament as hosts since the 2006 FIFA World Cup and fixtures took place in ten host cities including the capital, Berlin.
When the value of the euro increases compared to the US dollar? ›
If the value of the euro increases with respect to the US dollar, we say it “appreciates” against that currency, and this allows us to buy more dollars with €1. When the value of the euro falls with respect to the US dollar, the euro “depreciates”: it becomes weaker and we are able to buy fewer dollars with €1.
What is the price prediction for euro coin? ›
EURC Predictions For Next Week, Month, and Years Based on Historical Performance
| EURC Price | $1.10 |
|---|
| 1-Month Prediction | $1.17 (7.78%) |
| 3-Months Prediction | $1.20 (9.84%) |
| 6-Months Prediction | $1.61 (48.33%) |
| 1-Year Prediction | $2.05 (88.66%) |
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