2020 Euro EURUSD Forecast

Forecasts for the EUR USD vary from bank to bank and from month to month. This article looks at the general trend in the Euro forecast and how it might impact your home currency.

Euro EUR USD Bank Forecast

In 2020, most banks forecast the Euro will gradually strengthen against the US Dollar. However, not by much.

Uncertainty from Britain leaving the Eurozone (Brexit) continues to have a negative impact on the Euro. Slowing European economic growth is also predicted in the first half of 2020.

Check today's Euro to US Dollar (EURUSD) Exchange Rate: Currency Converter and Graph

Updated in November 2019

How to compare the best Euro USD exchange rates

Compare exchange rates from Australian banks and foreign exchange leaders.

You don't like getting ripped off. So why are you ok with paying exorbitant fees and rates on currency conversions? You shouldn't be.

At The Currency Shop we help you compare providers to find the best EUR exchange rates and lowest fees right now. Leaving you more time and energy to conquer the world.

Euro USD forecast in 2019

Most bank forecasts show the Euro has been weaker than expected in 2019. Banks have frequently had to adjust Euro currency pairs (EUR against other exchange rates) to reflect a falling EUR trend.

Will the Euro get stronger in 2020?

Yes, but only a little bit - if we agree with most major banks.Let's examine the 4 most likely reasons the Euro will remain weak at current forecast levels:

Euro EUR USD Bank Forecast
  • The US economy picks up, US political risks ease, and the Federal Reserve (central bank) increases interest rates, supporting the USD
  • Slowing European Union economies led by the German economy. Weaker growth equates to a falling Euro
  • Britain's exit from the EU (Brexit), ongoing uncertainty leads to a weaker Euro rate relative to other currencies (apart from the British Pound)
  • China’s economic growth slows, reducing China trade and lowering demand for European imports

How does a weaker Euro affect me?

A weaker Euro isn't great for citizens of the 19 countries in the Eurozone, especially if they want to move or travel overseas or who are already living abroad. Fortunately, you'll be able to transfer money overseas at better rates in the second half of 2020 if bank forecasts are accurate.

Travellers

If you’re planning to travel abroad for a holiday next year, a stronger Euro will certainly help you, particularly if you choose a destination with a weaker currency. However, we recommend going in the second half of 2020 when there's less uncertainty around Brexit. A trip to the UK, perhaps?

 

Expats and Pensioners

If you're an expat or pensioner supporting your lifestyle abroad using a Euro bank account, you might have greater buying power later in the year. This means you can purchase more Pounds Sterling while you’re in the UK, or Aussie dollars if you’re in Australia, for example.

Euro EUR USD Bank Forecast

What are the key influences on the Euro exchange rate?

1. Eurozone Economy

Growth in the 19 Eurozone countries was surprisingly strong in 2018, led by Germany and France. This supported the Euro and the Euro against most crosses. However, uncertainty over global growth in 2019 and 2020 means the Eurozone countries could continue to slow. This will pressure the Euro down against most crosses.

Euro EUR USD Bank Forecast

 

2. EU Politics

Many are still unsure whether integrating the economies of 19 countries into one bundle (the Eurozone) including a common currency (Euro) will work. If one country has political issues, it can create uncertainty for the whole Eurozone. Greater uncertainty from politics means investors will sell the Euro, because there is a greater chance of it getting weaker.

3. Other Currencies

The US dollar (USD) has a significant influence on the Euro. Generally, when the USD gets stronger, the Euro is relatively weaker and vice versa. With the USD expected by analysts to be weaker in 2020, it could boost a stronger then expected Euro performance.

EUR to USD Exchange Rate Calculator

Today's rate

EUR bank forecast currency pairs

EUR to GBP forecast

Most of the major banks agree the EURGBP cross rate could fall further in 2020. With all of the political issues around the UK exiting the Eurozone, there is still a lot of uncertainty and it looks like banks are taking a cautious approach to forecasting the EUR GBP.

EUR to AUD forecast

Banks are expecting the Australian Dollar to remain relatively weak against the Euro in 2020. However, with the Eurozone and Australian economies slowing down, both currencies could get weaker. This means the EUR exchange rate might not move relatively too much against the AUD next year.

EUR to JPY forecast

Most bank analysts agree the EUR JPY could move higher in 2020 first half of 2020. However, the Euro might underperform the Yen in the second half of the year.

Where to find the best EUR cash rate

In Australia, the best cash rates are found in major cities. We regularly check the main money changers in each CBD to find out the best forex exchange rates for Euro in town.

How to track down the best cash rate

You can either walk around to each money changer, try and call each one and check their rate or you can use our city and suburb guides:

Compare international money transfer exchange rates

General advice: The information on this site is of a general nature only. It does not take your specific needs or circumstances into consideration. You should look at your own personal situation and requirements before making any financial decisions.