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.



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.



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.




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.

Money Transfer Comparison Tool


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.

Recommended For You

2018 Australian Dollar Forecast

2018 Australian dollar forecast

What will the Australian dollar do in 2018 and how will it affect you?

Currency Exchange Guide

The Ultimate Guide to Currency Exchange

This guide will show you how to track down the best exchange rates for your next overseas holiday.

Cheaper ways to transfer money overseas

37 Practical Guides to Transferring Money Overseas Without Getting Ripped Off

Transferring money overseas can be incredibly expensive. These guides will take you through what options are available, explain all the fees, charges and exchange rates…

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.