The EUR to PHP exchange rate is currently range-bound, trading around 68.84. Key drivers include a narrowing interest rate differential, as the European Central Bank (ECB) maintains a flexible policy while the Bangko Sentral ng Pilipinas (BSP) has recently cut rates. Economic performance is also a factor, with the Eurozone projected to grow at 1.6% in 2026, while the Philippines faces challenges from governance issues that have affected growth expectations.
The expected near-term range suggests stability, but fluctuations are likely given oil prices, which have recently been volatile and are currently trending below their average. If oil prices rise significantly, it could support the euro. Conversely, any further rate cuts by the BSP or negative economic news from the Philippines could weaken the peso, impacting the exchange rate.
Overall, both currencies face pressures that will determine their performance in the coming months.