The euro remained above $1.10 on Wednesday after the European Commission presented a proposal for a €750 billion euro recovery fund, which includes €500 billion in grants and €250 billion in loans. However, the plan still needs to be approved by all member states and negotiations will take time as at least four countries including Austria, Sweden, the Netherlands and Denmark oppose issuing grants. EU leaders will meet again on June 18th to discuss it. Last week, German Chancellor Angela Merkel and French President Emmanuel Macron announced they would back up a €500 billion fund that would offer grants to countries and sectors hit hardest by the pandemic, but the idea was opposed by a group of more frugal EU member states that ended up delivering a counter-proposal under which the Emergency Recovery Fund would be based on a 'loans for loans' approach.
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 Exchange Rate - EUR/USD - Luxembourg - data, forecasts, historical chart - was last updated on May of 2020.
The Euro Dollar Exchange Rate - EUR/USD is expected to trade at 1.09 by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 1.08 in 12 months time.