The exchange rate forecast for EUR to TWD appears cautiously optimistic in light of recent developments. Analysts note that the Euro has strengthened due to positive economic indicators from Germany, particularly the unexpected rise in the ZEW economic sentiment index. This upbeat sentiment was bolstered by concurrent weakness in the US dollar, which generally supports the euro since the two currencies have an inverse relationship.
Market updates reflect that the EUR/TWD rate recently reached 7-day highs near 35.69, marking a 2.6% increase over its 3-month average of 34.79. The euro has maintained stability within a range of 5.8%, oscillating between 33.91 and 35.87. The positive sentiment surrounding the euro is further supported by ECB President Christine Lagarde’s upcoming remarks, which may hold hawkish tones influencing the currency positively.
Key developments within the Eurozone, such as Bulgaria's imminent entry into the eurozone and the ECB's current approach to monetary policy, hint at further stability for the EUR. While ECB officials have raised concerns regarding the rapid appreciation of the euro, which has surged 14% against the US dollar in 2025, it underscores the delicate balance the ECB needs to maintain to support economic growth without hindering export competitiveness.
Conversely, the New Taiwan Dollar (TWD) faces challenges primarily due to the central bank's enforced capital controls designed to curb the TWD’s significant appreciation this year, which exceeds 10%. This measure aims to protect Taiwan’s export-led economy, suggesting that the TWD could face downward pressure. Additionally, the market is cautious due to potential external factors like U.S. tariffs, which threaten the economic outlook.
Observably, external commodities, particularly oil, also play a role in the currency dynamics. Oil prices recently hit 7-day highs near 68.47, although they remain just below their 3-month average. The significant price volatility in oil, ranging from 65.50 to 78.85, could have ripple effects on the economy and subsequently on the currencies involved, including the euro and TWD.
Overall, the interplay between ECB's policy decisions, external geopolitical factors, and the economic strategies of Taiwan’s central bank will notably shape the EUR to TWD exchange rate in the near future. As conditions evolve, individuals and businesses engaging in international transactions should remain alert to these market updates to optimize their currency strategies.
