Euro Exchange Rate News Index

The euro (Currency:EUR) remains firm today and the outlook suggests we could see more of the same as the Eurozone continues to benefit from capital inflows; this as investors continue to buy into Eurozone stock markets.

Today we see a number of commentators are forecasting the euro to remain firm. A look at the spot exchange rates this morning shows early strength for EUR:

The euro dollar exchange rate is 0.13 pct higher at 1.2922.
The euro pound exchange rate is 0.2 pct higher at 0.8533.
The euro Australian dollar exchange rate is 0.31 pct up at 1.3210.

NB: These are inter-bank market quotes, your bank will affix their own discretionary spread when passing on a retail rate. However, an independent FX provider will guarantee to undercut your bank's offer, thus delivering you more currency. Please see more here.

Outlook for the euro, comments:

UniCredit Bank: "EUR-USD is expected to trade sideways ahead of Bernanke’s testimony, but, as we do not expect big news from the Fed Chairman, we also do not see the euro taking greater directionality. For that, charts still require a break of either the 1.2970 or the 1.2790 threshold."


Live EUR/USD Chart


     

Exchange Rate
Forecasts 2013:

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GBP
EUR
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NZD
JPY
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CAD
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Lloyds Bank Research say:

Today’s Eurozone current account data won’t receive much attention, but it is notable that this has shown steady improvement in recent months, and the current account is now in surplus by EUR135bn in the 12 months to February.

"At the same time, portfolio investment is also positive, showing EUR103bn of inflow in the same 12 months. The offsetting flows mainly come form “other” investment, which includes cash, hedging and speculative flow, but in the longer run the combination of current account, FDI and portfolio flow that make up the “basic balance” is better correlated with the performance of the currency.

"Even though a lot of the improvement in the current account relates to weak Eurozone demand, as long as this is not leading to portfolio outflow it is hard to see it as EUR negative.

"The EUR consequently looks supported by these flow fundamentals as long as there is no obvious emergence of new reasons to be short."

Trading Central say the euro is to retain a positive bias against the pound; "long positions above 0.8505 with targets at 0.8535 & 0.8555."

The same technical analysts are also forecasting a continuation of the shared currency's rebound against the US dollar: "long positions at 1.2895 with 1.2955 & 1.2995 as next targets."