2018 Euro Dollar Forecast

Forecasts for the Euro against the US dollar (EUR USD) varies across different banks and over time. This article takes a look at the trend in EUR USD forecasts and other key EUR cross currency rates.

Bank forecasts for the Euro Dollar in 2018

The EUR USD exchange rate has gradually moved up from very low levels to around 1.1950 currently. At the start of last year, €1.00 Euro only bought you just over $1.00 US dollar. In 2018, most bank analysts predict the EUR USD to continue to rise towards 1.2500-1.3000 by the end of the year, but not without hiccups.


Updated in October 2018

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EUR Crosses Bank Forecasts

EUR GBP forecast for 2018

Most of the major banks agree the EUR GBP cross rate will remain around current levels of 0.9000 in 2018. With all of the political issues around the UK exiting the Eurozone, it looks like banks are taking a cautious approach to forecasting the EUR GBP.

EUR AUD forecast for 2018

Longer term outlooks for 2018 by major financial institutions suggest the EUR AUD cross rate will decline towards 1.4700. Currently the EUR AUD cross rate is at 1.5870.

EUR JPY forecast for 2018

The EUR JPY cross rate is currently just under 130.00. Most of the major banks expect the EUR JPY rate to move higher in 2018 towards 140.00 by the end of the year.

How does a rising Euro affect me?

A rising Euro is great for citizens of the 19 countries in the Eurozone who are lucky enough to move or travel overseas or who are already living abroad.

If you are an expat or pensioner supporting your lifestyle abroad using a Euro bank account, you will be able to transfer money overseas at better rates next year if the bank analysts forecasts are accurate. It means you have greater buying power, because you can purchase more Pounds Sterling while you’re in the UK, or Aussie dollars if you’re in Australia, for example.

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. A trip to the UK, perhaps?

What are the top 3 influences on the Euro?

1. Eurozone Economies

Growth in the 19 Eurozone countries has been surprisingly strong this year, led by Germany and France. This is supporting the Euro. Most bank analysts expect the Eurozone economies to continue to improve in 2018.

2. Eurozone Politics

Many are still unsure whether integrating the economies of 19 countries into one bundle (the Eurozone) 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 looking to rise in coming months, it might hinder a stronger Euro performance.

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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.