USD to EUR Forecasts
Divergent expectations for inflation and interest rates between the eurozone and the US from last year continue into 2022.
SupportUSD/EUR outlook
As the tragic Ukraine war continues USD/EUR is near 0.95, a 5 year high.
Due to the Eurozone’s reliance on gas from Russia, the euro is very vulnerable to the events in Ukraine with EUR/USD dropping to around 1.06 by the end of April whereas it had been approaching 1.15 in early February.
| Date | USD/EUR | Change | Period |
|---|---|---|---|
06 May 2022 | 0.9480 | 0.2% ▼ | 2 Week |
19 Feb 2022 | 0.8832 | 7.2% ▲ | 3 Month |
20 May 2021 | 0.8180 | 15.7% ▲ | 1 Year |
21 May 2017 | 0.8926 | 6% ▲ | 5 Year |
22 May 2012 | 0.7866 | 20.3% ▲ | 10 Year |
25 May 2002 | 1.0872 | 12.9% ▼ | 20 Year |
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Factors that impact the Euro exchange rate
The Euro surged 2.5 percent in early February after the Bank of England raised rates again and the ECB look to be not too far behind.
Before this the Ukrainian crisis and its risks for European energy supplies had pushed the euro down towards 18 month lows of 1.12 against the US dollar.
For the euro 2021 was a poor year against the greenback. At the start of last year EUR/USD was at the 1.2200 level ($1=.82€) but by June was being solidly sold off eventually finishing at 1.1300 by year end ($1=.89€).
But to be fair, the market’s expectation for a rise in US inflation and thus interest rates has pushed up the USD exchange rate against most currencies.
The euro (ISO: EUR) is involved in slightly more than 30% of all foreign exchange deals, and as such, is the world’s second most traded currency, behind the US dollar.
The euro is the currency of the eurozone (officially called the ‘euro area’), which consists of 19 of the 28 member states of the European Union, and is used by almost 350 million Europeans. It was introduced in January 1999.
Of all the thousands of exchange rates that exist in the world, the euro-to-US dollar exchange rate is the most actively traded, or most ‘liquid’.
Since its introduction, the euro’s lowest value against the dollar came in October 2000 when EUR/USD hit lows of 0.8231. The currency was strongest in July 2008, shortly before the worst stage of the 2007-2009 financial crisis, when EUR/USD reached 1.6038.
There are currently more than twenty nations and territories which peg their currencies to the euro, the largest of which is Denmark.
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Disclaimer: Please note any provider recommendations, currency forecasts or any opinions of our authors should not be taken as a reference to buy or sell any financial product.