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Euro Forecasts for 2020

Forecasts for the euro change all the time, affected by news events and relative sentiment towards the overall Eurozone economy. This continually updated article reviews EUR bank forecasts and popular cross-rate trends.

In May, Deutsche Bank predicted more euro depreciation. It said EUR/USD could break $1.10 over the summer, with key drivers being the Coronavirus pandemic , US-China trade war, and a possibly delayed Brexit.

On Brexit, Nordea Research has said that “no deal” will have the euro buying £0.95, that a Norway-type Brexit (“Norway plus”) or permanent customs union will lead to £0.81-0.83, and a deal akin to the current withdrawal agreement should see £0.83-0.84.

EUR/AUD could be a lot higher by year-end, at rates between A$1.67 and A$1.785, based on implied forecasts from Danske Bank and Westpac.

EUR in the markets

The euro is currently a more appealing investment than the US dollar as fiscal support and COVID-19 containment open the door to a faster paced recovery than what is likely in the US. With current USD weakness and strong long-term prospects for the European Union, there is speculation that the euro could be a contender as the world’s new reserve currency. In the short term the euro could be susceptible to swings, however in the longterm the euro has very good prospects. The currency is poised to move above 1.1850 and extend toward 1.20 in coming weeks.

In mid-July euro strengthened four-month highs (around 1.15 against the US dollar) as european leaders delivered a difficult agreement on a coronavirus rescue package to help member states manage the economic downturn. The historic stimulus package will see the bloc issue 750 billion euros (US$860 billion) of joint debt and is seen by market commentators as positive for the euro.

The Euro spent 2019 on a downwards trajectory, starting the year with highs at US1.1550 but then slid all year until October where it bottomed out at US$1.09 on Oct 1, close to long-term lows. Since then it has climbed back over the 1 year average of US1.11 towards US1.15.


EUR/USD - 90 day trend
EUR to USD at 1.1816 was trading 4.6% above AVG:1.1291 with LO:1.0795 and HI:1.1877 (90 days). There are no current rate alerts.

You can also read our full Foreign Exchange Guide to the Eurozone.

What is a good Euro exchange rate?

This is a difficult question and the answer really depends on many factors. The best way to consider an exchange rate’s current relative value is to look at the euro’s history against a range of currencies and in particular against the currency you are interested in exchanging it with.

For example, the following tables look at the change in the EUR exchange rate to the present day for periods going back 10 years for popular EUR exchange rates.

EUR/USD rateChangePeriod
06 Aug 2020 : 1.18760.5% ▼1 Week
14 Jul 2020 : 1.14103.5% ▲30 Days
15 May 2020 : 1.08229.2% ▲90 Days
14 Aug 2019 : 1.11446% ▲1 Year
15 Aug 2015 : 1.11106.3% ▲5 Years
16 Aug 2010 : 1.28257.9% ▼10 Years

EUR/USD 10 year historic rates & change to 13-Aug-2020 : 1.1814

EUR/GBP rateChangePeriod
06 Aug 2020 : 0.90390% ▲1 Week
14 Jul 2020 : 0.90780.4% ▼30 Days
15 May 2020 : 0.89391.2% ▲90 Days
14 Aug 2019 : 0.92402.1% ▼1 Year
15 Aug 2015 : 0.710127.3% ▲5 Years
16 Aug 2010 : 0.819910.3% ▲10 Years

EUR/GBP 10 year historic rates & change to 13-Aug-2020 : 0.9043

EUR/AUD rateChangePeriod
06 Aug 2020 : 1.64230.6% ▲1 Week
14 Jul 2020 : 1.63291.2% ▲30 Days
15 May 2020 : 1.68692.1% ▼90 Days
14 Aug 2019 : 1.64980.1% ▲1 Year
15 Aug 2015 : 1.50569.7% ▲5 Years
16 Aug 2010 : 1.432215.4% ▲10 Years

EUR/AUD 10 year historic rates & change to 13-Aug-2020 : 1.6521

 
Please note that the opinions of our authors are their own and do not reflect the opinion of Best Exchange Rates and should not be taken as a reference to buy or sell any financial product.