Forecasts for EUR to TWD
Recent forecasts for the EUR to TWD exchange rate suggest a cautious outlook as the euro experiences downward pressure amid geopolitical and economic challenges. Analysts note that the euro recently weakened, trading at 30-day lows near 34.71, which is 2.2% below its three-month average of 35.5. This decline can be attributed to a rising US dollar and ongoing challenges in the Eurozone, including cooling inflation and the impact of the ongoing war in Ukraine, which continues to create significant uncertainty.
The European Central Bank's monetary policy decisions and inflation control efforts will play a crucial role in determining the euro's trajectory. If upcoming CPI figures reveal further cooling, it may lead to additional downward pressure on the euro. Conversely, signs of persistent inflation could bolster the currency. Market observers emphasize that the euro is particularly sensitive to the economic fallout from the energy crisis linked to the Ukraine conflict, and a prolonged confrontation may exacerbate volatility.
For the Taiwan dollar (TWD), recent geopolitical tensions and the global tech sector slowdown are key concerns. The imposition of a 32% reciprocal tariff on Taiwanese goods by the US as part of a broader trade strategy might hamper TWD’s stability. Analysts indicate that if tensions escalate between China and Taiwan, this could deepen the currency's challenges, especially given Taiwan's dependence on its technology sector.
In terms of market volatility, the EUR to TWD has traded within a broad range of 33.70 to 37.37 in recent months, highlighting the fluctuating conditions in both economies. Additionally, oil prices, having recently fallen to a 90-day low of 61.29 and remaining significantly below their three-month average of 70.61, could also impact the euro's value, given the Eurozone's sensitivity to energy prices.
As economic indicators and geopolitical developments unfold, both the euro and the Taiwan dollar will likely remain under close watch, with their respective performances affecting the EUR to TWD exchange rate. Investors should remain alert to upcoming economic data releases and global market shifts that could further influence these currencies.
