Forecast of the dollar and euro exchange rates for 2024, taking into account existing trends

In 2024, the leading world currencies are still the US dollar and the euro.

But which of these currencies should you bet on in the coming year and in what is it better to store the bulk of your funds?

What will be the forecast for the US dollar exchange rate against the European currency Euro, taking into account the events that will occur in 2024?

At the moment, the situation is rather ambiguous, since both currencies are subject to pressure from the unstable political situation and the economic crisis.

The euro is weighed down by disagreements in the European Union on the issue of assistance to Ukraine and investor concerns about growing geopolitical tensions in the region.

In addition, the European Commission worsened the forecast for GDP in the European Union to 1.2%, while the predicted inflation will be 2.7%. That is, taking into account inflation, we can state a reduction in production by 1.5%.

But everything is not so sad with the European currency if we look at what is happening in the United States.

What will worsen the forecast for the dollar/euro exchange rate in 2024?

The situation in the United States looks more than threatening; the following factors put pressure on the exchange rate of the American currency:

• The situation in Texas is a migration crisis that threatens to escalate almost into an armed conflict.
• The political confrontation between Republicans and Democrats has reached its highest level in the past few years.
• The forecast inflation index in the US is 3.2% while the optimistic forecast for GDP is 1.5%. That is, taking into account inflation, there will be a reduction in production by 1.7%.

At the same time, most forecasts do not take into account what is happening now in Texas and how this will affect investor sentiment in the American economy. It is highly likely that the real economic indicators of the American economy in 2024 will be even higher than predicted.

The upcoming elections in the fall of 2024 do not add optimism to the dollar; there will be a serious struggle for the presidency, and political instability always negatively affects the exchange rate of the national currency.  

And this is not all the troubles that await the United States of America in 2024.

From all of the above, we can conclude that the forecast for the exchange rate of the dollar and euro for 2024 will be within the price corridor of 1.14 – 1.19 US dollars per 1 euro.

It is clear that this is only a forecast; the situation can change at any time under the influence of fundamental factors .