Best Exchange Rates

Home pages - full list (A-Z)


Euro to Strike 20-Month Low This Week; $1.12 Beckons

Those intending to pick up euros this week should consider heeding warnings offered by MUFG. The bank expects the euro to move towards cheaper levels in the coming days and it would therefore be unwise to pay rates offered on Monday.

Currency-News AUD EUR GBP USD
Email share     Facebook     LinkedIn    Twitter

The euro is set to weaken against the US dollar this week to a 20-month low of US$1.12, MUFG has said.

Uncertainties related to Brexit and doubts over the European economy’s resilience—Italy is now in recession and Germany barely escaped one in the fourth quarter—have plagued the euro over the past year, driving its price down from rates in the mid-US$1.25s to Monday morning’s quote of US$1.132. Unfortunately for holders of euros, the most recent bout of depreciation, which saw the currency lose 2.5 percent in the first half of February, is unlikely to be the last.

“The euro is currently trading on the defensive … after failing last month to break above the top of its recent US$1.12 to US$1.15 range. A test of the bottom of the range at US$1.12 appears likely in the week ahead,” MUFG researchers wrote this weekend.

EUR to USD - 1 Week chart to 18 Feb
EUR/USD - 1 Week chart to 18 Feb

As for the euro’s position against the pound, this will also weaken from levels in the mid-£0.87s should British MPs vote in favour of an evolved version of the Cooper amendment on February 27th, MUFG believes. The amendment aims to give Parliament the power to block a no-deal Brexit if a deal between UK and EU negotiators is not struck by the middle of March. Unlike EUR/USD, EUR/GBP is little changed on rates from a year ago.

Other forecasters weighing in on the euro include TD Securities. Experts at the Canadian firm see the euro weakening this week but not necessarily against the US dollar or sterling, more so against the Australian dollar.

“At these levels, we don’t see a compelling case to chase EUR/USD lower and yet we don’t see a strong case to buy it either. The break of the 200-day moving average and our upbeat stance on AUD imply a nice setup lower in EUR/AUD over the coming week,” TDS writes.

Important economic data for euro traders comes this week in the form of European PMIs, to be released on Thursday, and the minutes from the ECB’s January meeting, released on Friday. Traders might also exercise caution ahead of Friday afternoon’s speech by ECB President Mario Draghi. One of Draghi’s colleagues, Governing Council member Francois Villeroy de Galhau, warned on Sunday that the central bank might have to change its guidance on interest rates if it becomes evident that Europe’s economic slowdown will be more than temporary.


Further Reading


US Dollar Plunges After Fed Signals No Rate Hikes This Year

The US dollar crumbled on Wednesday after the Federal Reserve signaled it would keep interest rates unchanged throughout 2019, thereby backtracking on the two rate hikes it predicted in December.

Updated: 20 Mar, 2019

TransferWise Borderless Account – BER Review

TransferWise’s Borderless Account allows users to hold and convert funds in 40 different currencies, and send and spend internationally, all at the “real” exchange rate and with the low fees that TransferWise is renowned for. Users can also receive major-currency payments free of charge.

Updated: 20 Mar, 2019

CBOE Ditches Bitcoin Futures Amid Reduced Interest

Amid declining interest, the Chicago Board Options Exchange, or CBOE, has announced it will no longer offer bitcoin futures contracts once current contracts expire in June.

Updated: 19 Mar, 2019

Canadian Dollar to Lose a Further 5 Percent, Will Soon Buy Only US$0.71 (TD Securities)

Prospects for the Canadian dollar have turned “considerably to the downside” and the currency is likely to lose 5 percent of its value this year, TD Securities has said.

Updated: 19 Mar, 2019

Australian Dollar Still Struggling; AUD/GBP at Lowest Since 2016

A slight advance in AUD/USD this week to $0.705 is hardly cause for celebration; however, the stability this represents following 3 weeks of losses would normally signify reduced currency pessimism—in this case, it doesn’t even do that.

Updated: 19 Mar, 2019


Tags: Currency-News , , , ,

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. Full Disclaimer

Get a Better FX Deal when you Send and Spend Abroad.


Do NOT follow this link or you will be banned from the site!