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.

The Forecast for the Euro 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.

Transferring Money Overseas

If you’re looking to transfer money overseas, it really depends on the destination you’re moving your money to. Usually, a rising Euro exchange rate means it will be cheaper to transfer money overseas, while a falling Euro means it will be more expensive.

Check out the forecasts below for exchange rates predictions for 3 key cross rates in 2018.

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EUR GBP

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.

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EUR JPY

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.

 

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EUR AUD

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.

 


 

How to Find the Cheapest Way to Transfer Money Overseas

Compare The Total Cost

The total cost of the transfer comes down to 2 things:

Money transfer fees

1. Transfer Fees

Every Australian bank and money transfer company will charge you a different fee to send money overseas. Usually it’s between $10 and $32.

Exchange rate margin fees

2. Exchange Rate Margin

There is no “standard” exchange rate. Each bank will offer you a different exchange rate based on the currency you want to send overseas and the amount you need to send.

 

Provider Exchange
Rate
Transfer
Fee
Transfer
Time
Total (AUD) Rates last updated October 18 2018
TorFXRead Review 0.6183 $0.00 2-3 Days $16,172.64Lowest Cost Option Go to site Read Review
So, sending EUR 10,000 to Europe at an exchange rate of 0.6183 will cost you $16,172.64 with no fees.

About TorFX

TorFX are particularly good taking care of customers over the phone but using their website isn't the easiest to use. They don't charge a flat fee which is great but it's important to consider their exchange rates. While, they don't offer fantastic rates for small amounts under $2000 , TorFX offer exceptionally good exchange rates for larger transfers to the UK, New Zealand, South Africa and Europe.

Pros

  • No transfer fees
  • Highly competitive exchange rates
  • Secure transfers with authorised
  • Assigned account manager
  • 24 / 7 Assistance
  • Available range of transfer options

Cons

  • Limited exotic currencies available
  • Exchange rates on small transfers aren't great
  • Website experience could be better

XERead Review 0.6178 $0.00 2-3 Days $16,187.26$14.62 more expensive Go to site Read Review
So, sending EUR 10,000 to Europe at an exchange rate of 0.6178 will cost you $16,187.26 with no fees.

About XE

XE is a well known and trusted name in the money transfer industry. With over twenty years experience, they now help 33,000 people and 2,000 businesses make transfers each year. Over 60 currencies can be transferred with XE and they pride themselves on the free tools and transparent rates they offer. Click here to read the full review

Pros

  • Well known and trusted brand.
  • Very informative website. Extensive information on currency and money transfers.
  • XE App is available on both iOS and Android. It allows you to see the interbank rate for over 100 currencies.
  • XE themselves charge no fees for international money transfers.
  • Offers support for both individuals and businesses when it comes to international money transfers.

Cons

  • Cannot pay via cash or cheque. Must pay via bank transfer, BPay is also accepted in Australia.
  • Maximum transfer amount is $500,000USD.
  • While XE compares more than 100 currencies, there are only 60 that are available for money transfers.

TransferwiseRead Review 0.6205 $73.52 1-2 Days $16,189.56$16.92 more expensive Go to site Read Review
So, sending EUR 10,000 to Europe at an exchange rate of 0.6205 will cost you $16,189.56 which includes a fee of €73.52

About TransferWise

Transparency and an easy online experience are the 2 things that set TransferWise apart from the banks and other money transfer companies. If you prefer to bank online, you'll like TransferWise. Setting up an account and making a transfer is very easy. They are also very clear on the exchange rate and fees you'll pay before you make a transfer. Click here for the full review

Pros

  • Clear and transparent exchange rates fees
  • The online experience is first class
  • Like the banks, they are regulated by ASIC and registered with AFSL
  • Constantly bringing out new innovative products

Cons

  • There are currently a number of global currencies they do not currently support
  • Limited support based in Australia
  • Percentage based fee can add up on very large transfers

WorldFirstRead Review 0.6168 $0.00 2-3 Days $16,213.32$40.68 more expensive Go to site Read Review
So, sending EUR 10,000 to Europe at an exchange rate of 0.6168 will cost you $16,213.32 with no fees.

About World First

World First was founded in 2004 in the UK and has grown rapidly with offices now in the U.S., Canada and throughout Asia. They consistently receive strong customer reviews and in a recent study, 98% of their clients said they would use them again.World First have a strong online offering, particular for businesses selling online. They do provide local support as well with offices in Sydney. Click here to read the full review

Pros

  • Low fees and great exchange rates
  • Safe and secure transfers
  • Regulated by ASIC and registered with AFSL
  • Great for personal and business payments

Cons

  • Does not accept BPAY, credit card, cheque or cash
  • Limited currencies available

HIFXRead Review 0.6168 $0.00 2-3 Days $16,213.32$40.68 more expensive Go to site Read Review
So, sending EUR 10,000 to Europe at an exchange rate of 0.6168 will cost you $16,213.32 with no fees.

About HiFX

HiFX are one of the biggest money transfer companies in the world. Their parent company Euronet is listed on the NASDAQ and recently acquired Xe.com. They are particularly useful for individuals doing regular transfers overseas. HiFX provide competitive exchange rates no matter how much is being transacted. Their $50 minimum transaction size and flat fee makes them a great option for any international payment. Locally, HiFX have Australian offices in Sydney, Melbourne and are expanding to the remaining capital cities. Click here to read the full review

Pros

  • Fantastic bank - beating exchange rates
  • Low fees for transactions less than $10, 000
  • No fees for transactions of $10, 000 or more
  • High security transfers regulated by ASIC and FMA
  • Fast and easy for personal or business accounts

Cons

  • Only electronic bank transfers accepted
  • Limited exotic currencies
OFXRead Review 0.6113 $0.00 1-3 Days $16,358.58$185.94 more expensive Go to site Read Review
So, sending EUR 10,000 to Europe at an exchange rate of 0.6113 will cost you $16,358.58 with no fees.

About OFX

OFX (formally known as Ozforex) is the largest Australian owned money transfer company. It launched in 1998 and grew rapidly until finally listing on the Australian Stock Exchange in 2013. OFX excels in 2 areas – Online experience and customer service. The company was born online and continues to develop easy, intuitive products. While OFX customers do most of their transactions online, they are backed up with exceptional customer service.

Pros

  • Better exchange rates compared to banks
  • Highly safe and secure transfers
  • 1 - 2 days delivery times for most countries
  • Quick response time
  • Fantastic customer service

Cons

  • Credit cards, cheques and cash are not accepted
  • Transfers to Thailand can take up to 4 days
  • Fees for transfers smaller transfers

ANZRead Review 0.5940 $0.00 1-2 Days $16,835.02$662.38 more expensive Go to site Read Review
So, sending EUR 10,000 to Europe at an exchange rate of 0.5940 will cost you $16,835.02 with no fees.
ANZ International Money Transfer is a secure and fast way to transfer money overseas.

Pros:

  • Fast transfers
  • Safe and secure
  • No fee for transfers under $10 000 via Internet banking

Cons

  • $12 fee for transfers under $10 000 via Internet banking
  • Poor exchange rates
  • 24 hour hotline not available

Commonwealth BankRead Review 0.5878 $12.00 1-2 Days $17,024.59$851.95 more expensive Go to site Read Review
So, sending EUR 10,000 to Europe at an exchange rate of 0.5878 will cost you $17,024.59 which includes a fee of €12.00
Commonwealth Bank provides secure and easy transfers to over 200 countries and more than 30 currencies.

Pros:

  • Fast transfers+ Easy transfers
  • Security guarantee covers any losses from unauthorised transactions

Cons

  • $6 fee for transfers under $1000 via Internet banking
  • $12 fee for transfers under $1000 via Internet banking
  • Poor exchange rates


 


 

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?

If you want to maximise your spending power while you’re overseas, we recommend checking out our currency calculator for the best rates for various money transfer or travel money options.

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.

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.


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Helping You Save Money on Currency

Buying travel money or transferring money overseas can be expensive and confusing. So how do you make the best choice and get the most out of your money?

An easy way is to use a comparison table for either international money transfers or currency exchange. These tables list and compare the banks with other large foreign exchange companies.

We’ve also put together tons of helpful videosguides and reviews that will help you make the right decision. You can work out a cheaper way of converting currency while still keeping your money safe.