The euro bounced back above $1.16 during the third week of October, helped by broad dollar weakness, after the latter was knocked back by weak US factory and housing data. Still, the common currency remained close to its lowest level since July 2020, amid expectations the US Federal Reserve will be tapering faster than the European Central Bank. Fed officials are expected to begin scaling back asset purchases in November and start raising interest rates next year, while the ECB is seen hiking rates by 10 bps by the end of 2022. Meanwhile, ECB President Lagarde said over the weekend that the bloc's central bank will continue aiding the Euro Area economy as the fallout from the pandemic lingers, while trying to assuage the market’s inflation fear by saying she still expects supply shortages or rising energy prices to be transitory.
Historically, the Euro Dollar Exchange Rate - EUR/USD reached an all time high of 1.87 in July of 1973.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. Euro Dollar Exchange Rate - EUR/USD - data, forecasts, historical chart - was last updated on October of 2021.
The Euro Dollar Exchange Rate - EUR/USD is expected to trade at 1.16 by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 1.15 in 12 months time.