The Euro recovered above parity on Friday, as investors digest a more hawkish ECB and position for further rate hikes. The ECB raised interest rates by an unprecedent 75bps on Thursday, and said borrowing costs will continue to increase as inflation remains elevated. The Euro initially fell after the announcement amid increasing concerns over the economic outlook in Europe but then recovered, with President Lagarde saying the central bank is far away from the rate that will help return inflation to 2% target. At the same time, the dollar rally paused, as investors take some profit and as a 75bps rate hike from the Fed is already priced in.
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 September of 2022.
The Euro Dollar Exchange Rate - EUR/USD is expected to trade at 0.98 by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 0.95 in 12 months time.