The Euro gained against the USD on Monday morning, on expectations that the Federal Reserve will cut borrowing costs faster than the European Central Bank, rising demand for the dollar. Investors bet on a Fed funds rate cut next month while the ECB’s benchmark refinancing rate is expected to be lowered only in September. The Euro rose 0.2% to $1.139 around 11:30 am London time, its strongest level since March 22nd. Historically, the Euro Dollar Exchange Rate - EUR/USD reached an all time high of 1.87 in July of 1973 and a record low of 0.70 in February of 1985. The euro was only introduced as a currency on the first of January of 1999. However, synthetic historical prices going back much further can be modeled if we consider a weighted average of the previous currencies.
The Euro Dollar Exchange Rate - EUR/USD is expected to trade at 1.11 by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 1.10 in 12 months time.