The EUR to MYR exchange rate is currently bearish.
Key drivers include:
- The European Central Bank's (ECB) flexible interest rate policy continues to impact the euro's strength, especially in response to inflation data.
- Malaysia's strong economic indicators indicate a favorable projection for the MYR, which may lead to its appreciation against the euro.
- Reduced energy prices, with oil trading at highs, may affect the euro due to direct exposures in energy-related markets.
Over the next few months, the EUR to MYR exchange rate is expected to remain within a stable range with slight fluctuations.
An upside risk to the euro's performance could arise if the ECB decides to raise interest rates more aggressively, signaling a stronger economic recovery. Conversely, a downside risk includes worsening geopolitical tensions in Europe, particularly related to the war in Ukraine, which could create further instability for the euro.