The FOREX industry is known for its complexity and elusive nature. Among the numerous traded currencies, EUR/USD is among the most popular choices. As we approach Q3 2023, it is crucial to stay informed about the prevailing trends in this industry, enabling you to make more well-informed decisions.

Analysts project that the EUR/USD pair projections 2023 for Q3 will likely close around 1.08 or even slightly higher. Currently, the exchange rate hovers around 1.09, and based on the current cultural and global economic factors, it is expected to remain relatively stable by the year’s end.

In the rest of this article, we will explore the current state of the EUR/USD pair and the recent factors driving the Euro and USD going into the Q3 period of 2023.

Current State of EUR/USD pair Forex 2023

At present, the EUR/USD pair Forex 2023 is positioned at approximately 1.09. Last year it began the previous year at $1.1375, experiencing a gradual decline and concluding at $1.0726. This resulted in an average exchange rate of approximately 1.0538 for the fiscal year 2022.

Apart from considering the numerical values, it is vital to analyze the economic trends that could impact the EUR/USD pair projections for 2023

Influencing the Euro

Energy Productivity

The biggest concern for the euro is the potential energy crisis, despite the ECB and local policymakers actively combating inflation. By diversifying its energy suppliers and relying on LNG imports, the Eurozone has managed to mitigate some risks. 

However, the looming threat of a complete loss of Russian power, coupled with overcoming geometric complications, introduces the possibility of future increases in natural gas costs and the euro’s stability and value.

Influencing the USD

Active Federal Reserve

To address the rising inflation rates of the USD, the Federal Reserve has taken decisive measures. Throughout 2023, the Fed gradually increased the interest rates, reaching a range of 4.5%-4.75% by February and settling at 5% to 5.25% as of June 14, 2023.

Having attained the desired interest rates, the Federal Reserve has temporarily halted the inflationary adjustments. However, they may reassess the economy later in the year. Lower inflation levels will help keep the USD value stable.