The recent developments in the EUR to TWD exchange rate reflect a complex interplay of market forces and macroeconomic factors. Currently, the EUR is trading near 36.22 TWD, which is a notable 1.6% above its 90-day average of 35.64 TWD. This stability in the exchange rate, which has moved within a relatively narrow range of 35.03 to 36.22 TWD, suggests cautious optimism among traders.
Recent analysis indicates that the euro has benefited from a softer US dollar, though the European Central Bank's (ECB) dovish monetary policy shift poses challenges. Analysts note that the ECB may cut interest rates from 4.0% to 3.5% by late 2025 in response to slowing growth, which could impact the euro’s attractiveness relative to other currencies, including the TWD. Economic forecasts from the European Commission expected to be released subsequently may provide further guidance on the euro's trajectory.
Bulgaria's recent approval for eurozone accession in 2026 is also expected to influence the euro's value positively by enhancing its circulation. However, the ongoing geopolitical tensions, particularly the war in Ukraine, continue to weigh heavily on Eurozone stability. This uncertainty is tempered by a general recovery narrative, as evidenced by the euro's 14% appreciation against the USD since early 2025, which reflects a broad investor confidence in the Eurozone’s economic recovery.
On the other hand, the New Taiwan Dollar is facing pressures from external trade conditions. Although Taiwan’s central bank recently increased its economic growth forecast, concerns over potential U.S. tariffs may disrupt these gains. The TWD has shown significant fluctuations in recent months, notably depreciating back to 30 TWD per USD after a brief strengthening. These dynamics, coupled with life insurers adjusting their hedging strategies to manage currency volatility, could further complicate the TWD's outlook.
Furthermore, global oil prices have been volatile, with recent trends in Brent Crude OIL/USD hovering around 63.01, which is down 4.1% from its three-month average. Such fluctuations can impact the Eurozone's energy-dependent economies and, in turn, the euro's value against the TWD.
Overall, the exchange rate forecast for EUR to TWD suggests a cautious yet potentially optimistic outlook contingent on broader economic trends and external geopolitical developments. Markets will closely monitor the forthcoming economic forecasts and central bank policies that could sway the euro's performance in relation to the TWD.
