The euro appreciated above the $1.09 mark, reaching its strongest level since August 11, as data indicating persistent inflationary pressures in Germany and Spain led investors to factor in a higher likelihood of a European Central Bank rate hike. Simultaneously, weaker-than-expected US private employment figures and second-quarter GDP weighed on the greenback. Investors will now closely monitor Eurozone inflation data scheduled for release on Thursday, along with the US jobs report on Friday for additional insights into the potential direction of monetary policy. The Jackson Hole Symposium from last week featured slightly hawkish statements from both ECB President Christine Lagarde and US Federal Reserve Chair Jerome Powell. Adding to this sentiment, Robert Holzmann, the Austrian central bank chief and known for his hawkish stance, expressed the view that there is a compelling argument for further interest rate hikes in September.
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 August of 2023.
The Euro Dollar Exchange Rate - EUR/USD is expected to trade at 1.06 by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 1.02 in 12 months time.