The Euro slipped against the USD on Friday after flash PMIs for France, Germany and the Euro Area came well below market expectations. Private sector activity contracted in France for the first time since June of 2016 amid disruptions due to the ongoing ‘gilets jaunes’ protests. Also, Germany recorded the weakest pace of expansion in the private sector since December of 2014 and the Composite PMI for the Euro Area pointed to the smallest growth since November of 2014. The Euro was down to $1.1298 around 10:45 AM London time, the lowest in two weeks. 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 1.15 by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 1.13 in 12 months time.