The EUR/VND exchange rate is currently bearish, reflecting recent downward movement.
The European Central Bank (ECB) has maintained interest rates, indicating a cautious approach to the euro's strength, which could hinder the currency's rise as strong euros might lower inflation. Meanwhile, Vietnam's economic growth is expected to be robust, with ambitious GDP targets that can support the VND. Additionally, the Vietnamese inflation outlook remains stable, expected to be managed below 4%.
Over the near term, the euro is likely to trade within a range close to its recent levels, which are at a 7-day low. This stability reflects a narrower trading band compared to the past few months.
An upside risk for the euro could emerge from a significant recovery in European economic indicators, while a downside risk may come from persistent geopolitical tensions that could further impact the eurozone’s stability and investor confidence.