Euro Exchange Rate Today: EUR Powers Ahead, Forecasts Suggest the Outlook is Turning More Positive for the EUR

By Rob Samson

Euro rates (EUR) are today reasserting themselves on the global foreign exchange rate markets giving forecasters further reason to turn bullish on the EUR in the near-term.

The single currency skyrocketed reaching its monthly high at 1.3705 after better than expected manufacturing and services data came out from Eurozone.

Today we are seeing an extension of this strength.

Euro exchange rates today:

• The euro to pound sterling (EUR/GBP) exchange rate is 0.33 pct higher at 0.8259.
• The euro dollar exchange rate (EUR/USD) is 0.17 pct higher at 1.3720.
• The euro Aus dollar rate (EUR/AUD) is 0.98 pct higher is 1.5777.
• The euro NZ dollar exchange rate (EUR/NZD) is 0.61 pct up at 1.6787.

Note: Our EUR quotes are taken from the wholesale spot markets. Your bank will charge a spread at their discretion when passing on a retail rate. However, an independent FX provider is so well placed on the market that they are able to deliver you up to 5% more currency. Please learn more here.

Euro exchange rate action over the past 24 hours

Eurozone PMIs came in better than expected yesterday, while this was EUR positive, it perhaps wasn’t enough to justify the sharp move higher in EUR/USD suggest Lloyds Bank Research.

Lloyds say: "It could be argued the lower EONIA O/N fix provided some support for EUR/USD. Some had argued that the recent rise in EONIA suggested risks of ECB action on concerns about liquidity; this may have weighed on EUR/USD earlier this week.

"Today, the ECB announcement of 3Y LTRO repayments may attract some interest. The last two repayments were small, however if we see a larger repayment this could prompt EONIA to fix higher, and put some pressure on EUR/USD. Relative 2y forward points suggest this move in EUR/USD is extended and points to a move back below 1.36."

Forecast for euro rates today

Forecasters have moved from a generally bearish view of the euro in the short-term to a more neutral to bullish viewpoint. There are still those arguing that from a technical perspective we need to see further Euro strength before calling a positive outlook.  

Here is a selection of the latest euro exchange rate forecasts presented by Pound Sterling Live:

"Supportive PMI readings yesterday have been the trigger of the EUR-rebound. Technically, the failure to clear support at 1.3500/24 zone intensified rally to 1.3705. The sharp pick-up had significant impact on short term technical indicators. The MACD (12, 26 day) indicator stepped in the green zone and will suggest further upside correction for a daily close above 1.3640. The 21 & 50 dma (1.3646/42) are the first line of support to defend the bull-market pre-weekend. Regarding the option markets, we see evolution of positions on the upside for the week ahead. Bids are seen at 1.3585/1.3600 area." - Swissquote Research.

"Following the price action yesterday, the near term outlook for the pair may be turning slightly neutral if the 1.3700 ceiling is breached.
Meanwhile, downside support is expected towards the 55-day MA (1.3626) and markets may continue to fade upside moves in the EUR-USD ahead of the FOMC next week." - Emmanuel Ng at OCBC Bank.

"Stronger preliminary EMU PMI surveys lifted EUR-USD above 1.3650. A break through 1.37 is the next logical target, but, given the speed of the EUR rise, profit taking is likely to occur before any new assault takes place." - UniCredit Bank.

"The sharp recovery yesterday does not confirm any reversal pattern and as MACD is below its zero line, there’s scope for resumption of downtrend
to support at 1.3508 and then 1.3400. Resistance should hold at 1.3700." - UBS.