Euro Exchange Rate Forecast for October 9
This week the EUR has been falling against the USD as the dollar continues to gain in strength. It had dropped as low as 1.2624 early on Wednesday but did recover back above 1.2640. The IMF said that Europe was experiencing a “multispeed recover” and revised down its growth forecasts for Germany and France. The USD is expected to strengthen this week when the Federal Reserve publishes its latest meeting’s minutes so it is likely that the EUR/USD will fall even further.
However, the EUR was up against the GBP climbing as high as 0.7879 on Wednesday morning. Nonetheless the direction this pair takes in the coming days will largely depend on the contents of a speech being given by the President of the ECB on Thursday. If he hints towards looser monetary policy then the EUR could easily begin falling.
The EUR is also up against the AUD. The AUD was hit particularly hard by the IMF’s revised forecast and this is likely to continue for a few days. It is likely that the AUD will continue losing value unless there is some surprise data out of Australia.