The Euro traded lower below $1.21 to start February, close to levels not seen in 2 weeks, amid a general dollar strength after recent retail frenzy sent investors away from riskier currencies. Later on January, the Euro depreciated after ECB Knot said the central bank has the necessary tools to act on Euro strength and that the common currency appreciation would take prominence for the central bank if it threatens the inflation outlook. Knot added in an interview with Bloomberg TV the central bank could decide to cut its deposit rate further below zero if that proved necessary to keep its inflation target in sight. The ECB kept the door open to more stimulus during its January monetary policy meeting but Christine Lagarde warned about the risks of rising infections and new lockdowns.
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 February of 2021.
The Euro Dollar Exchange Rate - EUR/USD is expected to trade at 1.21 by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 1.20 in 12 months time.