The euro has continued its upward trend against the US dollar, breaching the $1.05 mark and nearing levels last seen in mid-December. This surge is largely attributed to growing anticipation of increased defense expenditure from European governments.
Driving this sentiment is European Commission President Ursula von der Leyen’s recent announcement outlining new EU strategies to bolster Europe’s defense industry. These ambitious plans could potentially mobilize approximately €800 billion. Furthermore, the proposal includes offering member states greater fiscal flexibility for defense investments, complemented by €150 billion in loans designed to facilitate these critical efforts.
In parallel, global economic factors are also influencing the euro’s performance. The backdrop of an escalating trade war, highlighted by the recent implementation of new US tariffs on key trading partners such as Canada, Mexico, and China, and the subsequent retaliatory measures, adds complexity to the currency market.
Adding another layer to the economic landscape is the anticipated monetary policy decision from the European Central Bank (ECB). Market observers widely expect the ECB to implement a borrowing cost reduction this week, marking a significant monetary policy adjustment.
On Wednesday, March 5th, the EURUSD exchange rate edged up by 0.0003 or 0.02%, reaching 1.0629, compared to 1.0626 in the previous trading session. Historically, the Euro US Dollar exchange rate reached a record high of 1.87 in July 1973. While the euro was officially introduced in 1999, historical models allow us to trace synthetic prices back further by considering a weighted average of predecessor currencies.
Currently, analysts’ expectations and global macro models from Trading Economics suggest that the EUR/USD exchange rate is projected to trade around 1.03 by the end of the current quarter and potentially reach 1.02 within a 12-month timeframe.
| Crosses | Price | Day | Year | Date |
|---|---|---|---|---|
| EURUSD | 1.0629 | 0.0003 | 0.03% | -2.46% |
| EURGBP | 0.8308 | 0.0004 | 0.04% | -2.95% |
| EURAUD | 1.6971 | 0.0029 | 0.17% | 2.22% |
| EURNZD | 1.8785 | 0.0030 | 0.16% | 5.66% |
| EURJPY | 159.1280 | -0.0065 | 0% | -2.27% |
| EURCNY | 7.7214 | 0.0151 | 0.20% | -1.55% |
| EURCHF | 0.9451 | 0.0001 | 0.01% | -1.66% |
| EURCAD | 1.5325 | 0.0030 | 0.20% | 4.06% |
| EURMXN | 21.8899 | -0.0018 | -0.01% | 19.13% |
| EURINR | 92.6339 | -0.0308 | -0.03% | 2.95% |
| EURIDR | 17,347.8733 | -62.8277 | -0.36% | 1.37% |
| EURPLN | 4.1674 | 0.0029 | 0.07% | -3.03% |
| EURSEK | 11.0716 | -0.0022 | -0.02% | -1.26% |
| EURCZK | 25.0699 | -0.0126 | -0.05% | -1.09% |
| EURHUF | 398.8500 | -0.1470 | -0.04% | 1.40% |
| EURNOK | 11.8117 | 0.0221 | 0.19% | 3.34% |
| EURZAR | 19.6304 | -0.0089 | -0.05% | -4.31% |
| EURBRL | 6.3881 | 0.0972 | 1.55% | 19.00% |
| EURKRW | 1,534.2895 | 4.3721 | 0.29% | 6.21% |
| Related | 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 Rate | 4.50 | 4.50 | percent | Feb 2025 |
| US Non Farm Payrolls | 143.00 | 307.00 | Thousand | Jan 2025 |
| Euro Area Unemployment Rate | 6.20 | 6.20 | percent | Jan 2025 |
| United States Unemployment Rate | 4.00 | 4.10 | percent | Jan 2025 |
Euro US Dollar Exchange Rate – EUR/USD
The EURUSD spot exchange rate reflects the current value of the euro in relation to the US dollar for immediate exchange. In contrast, the EURUSD forward rate specifies an exchange rate agreed upon today for a transaction that will occur on a predetermined future date.
| Actual | Previous | Highest | Lowest | Dates | Unit | Frequency | |
|---|---|---|---|---|---|---|---|
| 1.06 | 1.06 | 1.87 | 0.64 | 1957 – 2025 | Daily |
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