EUR base rate against USD looking at a possible recovery

EUR Base Rate Against USD Looking at A Possible Recovery

The EUR base rate against the USD is moving towards a decline as it reaches new lows but may jump up soon. In the near future, it may reach the lower end of its current 1.050 to 1.100 trade range. This is according to official Forex analysts keeping a close eye on the exchange rate.

As things currently stand, the rate is around 1.058. So, 100 EUR to USD gives us $105 in exchange. Reaching such a low point in the trading range could lead to a revival soon, completely flipping the ongoing trend. This trend has been going on for a while now as the euro has struggled to fight off the dollar. In fact, it has been that way for the majority of this last quarter. The rate originally reached 1.130 in July but has been on a continuous decline since.

Factors Affecting EUR USD Forum Concerns

EUR USD forum worries mainly are concerned with a few factors. The reason for this decline most likely lies in the Eurozone economy, among other possible factors. The area has cyclical economic fluctuations and is currently on a downtrend. Another factor that contributes is the policies of America’s Fed. They have been noticeably hawkish in keeping interest rates up, boosting the dollar. Finally, poor economic data for the EU also sent traders away from the euro. The ECB, therefore, had to readjust its forecast for GDPs within the area.

PMI data has been particularly noteworthy, as it has indicated a major decline in GDP soon. The risk for GDP remains high. There is hope, though, that the euro is now reaching its lower limit. If a recovery comes soon, it would show that these economic struggles are likely temporary.

However, the US economy is still going strong in the background. Therefore, it will have to be an uphill battle for the EUR base rate.

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