The euro began March on a positive note, edging closer to the $1.05 mark. This upward movement marks a recovery from a recent low of $1.036, which was hit last Friday. Market sentiment appears to be buoyed by emerging discussions around increased defense spending within the Eurozone.
Fueling this sentiment, UK Prime Minister Keir Starmer announced plans for a collaborative effort between Britain and France. This “coalition of the willing” aims to develop a strategy, in partnership with Kyiv and other allies, to resolve the ongoing Russia-Ukraine conflict and establish robust security assurances for Ukraine with backing from Washington. Germany is also anticipated to play a significant role in bolstering European defense capabilities, with reports indicating the potential creation of dedicated funds for defense and infrastructure investments.
Market participants are now keenly focused on the upcoming European Central Bank (ECB) policy meeting. The expectation is for the ECB to implement a fifth consecutive interest rate cut as part of its ongoing monetary policy adjustments.
In economic data, recent figures show a slight moderation in Euro Area inflation for February, coming in at 2.4%. However, this figure remains above earlier projections. Core inflation, which excludes more volatile components, also saw a decrease to 2.6%. This is the lowest core inflation rate since January 2022, but it is still marginally higher than analysts had anticipated.
EUR/USD Exchange Rate Update: March 3rd Snapshot
On Monday, March 3rd, the EUR/USD exchange rate experienced an increase of 0.0115, or 1.11%, reaching 1.0493. This reflects a rise from the previous trading session’s rate of 1.0378.
Historically, the EUR/USD exchange rate has seen considerable fluctuation. The highest recorded value was 1.87 in July 1973. It’s important to note that the euro as a currency was officially introduced on January 1, 1999. Historical data prior to this date is modeled using a synthetic representation based on a weighted average of the currencies that were predecessors to the euro. The latest data for the EUR/USD exchange rate was updated on March 3, 2025.
EUR/USD Predictions and Market Expectations
Current economic models and analyst forecasts from Trading Economics suggest that the EUR/USD exchange rate is anticipated to trade around 1.03 by the end of the current quarter. Looking further ahead, the forecast for the exchange rate in 12 months’ time is estimated to be 1.02.
| Crosses | Price | Day | Year | Date |
|---|---|---|---|---|
| EURUSD | 1.0488 | 0.0111 | 1.07% | -3.37% |
| EURGBP | 0.8251 | -0.0002 | -0.02% | -3.54% |
| EURAUD | 1.6785 | 0.0068 | 0.41% | 0.69% |
| EURNZD | 1.8615 | 0.0082 | 0.44% | 4.50% |
| EURJPY | 157.5750 | 1.2935 | 0.83% | -3.56% |
| EURCNY | 7.6527 | 0.0833 | 1.10% | -2.12% |
| EURCHF | 0.9410 | 0.0039 | 0.41% | -2.03% |
| EURCAD | 1.5115 | 0.0114 | 0.76% | 2.59% |
| EURMXN | 21.4452 | 0.1191 | 0.56% | 16.62% |
| EURINR | 91.5744 | 0.8004 | 0.88% | 1.76% |
| EURBRL | 6.1559 | 0.0472 | 0.77% | 14.62% |
| EURKRW | 1,525.6276 | 8.6446 | 0.57% | 5.80% |
| EURIDR | 17,276.3822 | 121.3370 | 0.71% | 1.16% |
| EURPLN | 4.1612 | -0.0299 | -0.71% | -3.63% |
| EURSEK | 11.0403 | -0.1719 | -1.53% | -1.91% |
| EURCZK | 25.0188 | -0.0472 | -0.19% | -1.31% |
| EURHUF | 399.8330 | -6.2990 | -1.55% | 1.09% |
| EURNOK | 11.7087 | 0.0272 | 0.23% | 2.11% |
| EURZAR | 19.5041 | 0.1078 | 0.56% | -5.62% |
| Related Economic Indicators | Last | Previous | Unit | Reference |
|---|---|---|---|---|
| Euro Area Inflation Rate | 2.40 | 2.50 | percent | Feb 2025 |
| United States Inflation Rate | 3.00 | 2.90 | percent | Jan 2025 |
| Euro Area Interest Rate | 2.90 | 2.90 | percent | Feb 2025 |
| United States Fed Funds Interest Rate | 4.50 | 4.50 | percent | Feb 2025 |
| United States Non Farm Payrolls | 143.00 | 307.00 | Thousand | Jan 2025 |
| United States Unemployment Rate | 4.00 | 4.10 | percent | Jan 2025 |
| Euro Area Unemployment Rate | 6.30 | 6.20 | percent | Dec 2024 |
Euro US Dollar Exchange Rate – EUR/USD
The EUR/USD spot exchange rate represents the current value of the Euro in relation to the US Dollar. This rate is for immediate exchange and settlement. In contrast, the EUR/USD forward rate is set today for a transaction that will occur and be settled on a specific date in the future.
| Historical EUR/USD Data | Actual | Previous | Highest | Lowest | Dates | Unit | Frequency |
|—|—|—|—|—|—|—|
| | 1.05 | 1.04 | 1.87 | 0.64 | 1957 – 2025 | Daily | |
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