The euro extended gains to above $1.07, the highest in four weeks after ECB President Christine Lagarde said the central bank is likely to exit negative interest rates by the end of the third quarter. Traders were already boosting bets for higher borrowing costs after hawkish comments from ECB Knot and ECB Villeroy de Galhau last week. On the data front, the latest PMI data showed growth remained robust in May supported by the service sector and cost pressures eased for the second month but remained elevated. Also, the Ifo Business Climate indicator for Germany unexpectedly rose to a 3-month high of 93, indicating Europe's largest economy continues to show no signs of a recession. Still, Europe’s common currency is not far from a 5-year low of $1.035 reached last week as the invasion of Ukraine by Russia deepened the energy crisis, boosted inflation, and is slowing growth.
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 May of 2022.
The Euro Dollar Exchange Rate - EUR/USD is expected to trade at 1.05 by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 1.03 in 12 months time.