The relative response to the coronavirus pandemic by the Eurozone, US election uncertainty pushed down the USD to EUR exchange rate in the second half of last year until early January when the trend changed direction in favour of the greenback so far in 2021.
ING see the ECB decision to lean against the rising bond yields as a positive for EUR/USD. They expect EUR/USD to move above 1.2500 this summer.
Swiss bank UBS see the EUR/USD rate to rise near 1.27 (USD/EUR below 0.78) by the end of 2021 as the world recovers from the pandemic and has less need for USD as a safe haven.
On the other hand, TD Bank told Bloomberg TV on Jan 10 they see the EUR/USD to push below 1.20 (USD/EUR above 0.83) on optimism over the vaccine role out.
Other more optimistic forecasters, believing the ECB’s support of the eurozone economy is working, suggest EUR/USD will test new highs at the very beginning of 2021. If this early test holds they believe EUR/USD will have a good chance of a strong upside trend against the U.S. dollar this year.
USDEUR experienced a sell-off to its yearly lows in mid December as investors moved away from the safe haven of the dollar and into riskier assets, off the back of Biden winning the presidential election and the positive news of COVID-19 vaccine testing.
USDEUR at 0.8346is near its 90-day average, 0.8214-0.8534 range.
Note that forecasts and predictions for the USD/EUR exchange rate change all the time, affected by news events and relative sentiment towards the US and Eurozone economies and this exchange rate is even more volatile than usual because of the uncertainties around the Coranavirus pandemic.
Whether the euro will rise or drop in the future against the US dollar is a difficult question and the answer really depends on many factors. The best way to consider the current USD-EUR relative value is to check the change in the exchange over a range of periods to the present day. The below table does this for periods going back 10 years.
09 Apr 2021
17 Mar 2021
16 Jan 2021
16 Apr 2020
17 Apr 2016
19 Apr 2011
USD/EUR 10 year historic rates & change to 16-Apr-2021 : 0.8346
General advice: The information on this site is of a general nature only. It does not take your specific needs or circumstances into consideration. You should look at your own personal situation and requirements before making any legal, accounting or financial decisions. The foreign exchange rates and products compared on this page and website are chosen from a range of products that bestexchangerates.com (BER) has access to and are not
representative of all the products available in the market.
We may receive referral fees in relation to your activity on the BER website however this doesn't affect the exchange rates or fees you are charged.
The use of terms "Best" and "Top" are not product ratings and are subject to our Disclaimer.