Longterm 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.
What’s in this Euro 2021 forecast?
Market News
EUR/JPY – The Euro gained ground against the Yen despite the ECB’s pledge to keep interest rates at record lows at the conclusion of their meeting on Thursday. On Friday at the close of New York trade, the EUR/JPY was at 130.12 against its 129.70 close a week ago. The mild recovery in risk appetite favoured the Euro. The overall range for EUR/JPY was 128.59 low (Wednesday) and 130.30 high (Friday).
The European Central Bank cast no fresh clues after it left interest rates unchanged at the conclusion of its June meeting yesterday. While the ECB upgraded its growth and inflation projections there was no talk of tapering. The FOMC announcement set off a big rebound in the US Dollar and saw currencies, asset markets sold off.
EUR/GBP – also had a volatile trading week with both currencies lively against the US Dollar. The Euro closed at 0.8563 Sterling on Friday from 0.8545 a week ago. While the net change is small, the overall weekly range for EUR/GBP was 0.8511 (last Friday) and 0.8670 (Wednesday).
Will the Euro Weaken or Strengthen?
In the past two trading days the Euro has slid to 1.1860 from 1.2005. We will hear more from policymakers in the coming week. The sell-off in the currencies against the US Dollar may well continue. The topside of the EUR/USD is now limited to 1.2000 and the risk is for a move to the next support at 1.1700.
The Euro strengthened against the US dollar to around 1.22 in late May after a very good April rising from 1.17 to 1.21 – this was despite Europe still struggling with third Covid waves. Recent higher European vaccination gives markets confidence in a European recovery later in the quarter.
Swiss bank UBS see the EUR/USD rate to rise near 1.27 by the end of 2021 as the world recovers from the pandemic and has less need for USD as a safe haven.
You can also read our full Foreign Exchange Guide to the Eurozone.
EUR to USD
EUR to USD at 1.1867 has fallen 1.1% below its 90-day average, range 1.1771-1.2250.EUR/USD Rates
EUR/USD – Despite some heavy selling pressure, the Euro held a weekly low at 1.1754, settling at 1.1769 at the close on Friday. A week ago, EUR/USD finished at 1.1805. USD-EUR Forecasts
GBP to EUR
GBP to EUR at 1.1717 is 0.7% above its 90-day average, range 1.1487-1.1747.GBP/EUR Rates
EUR/GBP – also had a volatile trading week with both currencies lively against the US Dollar. The Euro closed at 0.8563 Sterling on Friday from 0.8545 a week ago. While the net change is small, the overall weekly range for EUR/GBP was 0.8511 (last Friday) and 0.8670 (Wednesday). GBP-EUR Forecasts
AUD to EUR
AUD to EUR at 0.6190 has fallen 2.3% below its 90-day average, range 0.6190-0.6456.AUD/EUR Rates
The Euro gained versus the Aussie last week, finishing at 1.5960 from 1.5852 last week. Weekly high for this cross-currency pair was at 1.5975, which was hit last Friday. The recorded low occurred on Thursday which was at 1.5775. AUD-EUR Forecasts
CAD to EUR
CAD to EUR at 0.6754 is just below its 90-day average, range 0.6648-0.6843.CAD/EUR Rates
The CAD/EUR rate has steadily increased (up around 7) since it’s lows around 0.63 in August last year. CAD-EUR Forecasts
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Disclaimer: Please note that the currency forecasts and opinions of our authors should not be taken as a reference to buy or sell any financial product.