The euro to Vietnamese dong (EUR/VND) market remains range-bound.
The European Central Bank's (ECB) cautious approach on interest rates, alongside its concerns that a stronger euro could suppress inflation, is weighing on the euro's value. As a result, forecasts suggest that the euro may face challenges due to these monetary policy considerations. Additionally, Germany's improved consumer confidence could provide some short-term support for the euro as it heads into January 2026.
On the other hand, the Vietnamese dong benefits from robust economic targets and stable inflation forecasts. Vietnam's GDP growth target of at least 10% for 2026 signals a positive economic outlook, supporting the stability of the dong.
Over the next one to three months, the EUR/VND exchange rate is likely to remain within a narrow trading range, given its current stability above its three-month average. A potential upside risk for the euro could arise from stronger economic performance in the Eurozone, while a downside risk may involve global trade tensions or geopolitical factors impacting investor sentiment toward the euro.
