EUR/USD Exchange Rate Trend and History Chart: 20 Years

This chart for the EUR/USD exchange rate and trend shows a 20 year history. Since the Euro exists only for about 10 years we had to make some calculations. You will see later below. 20 years provides a unique historic perspective.

Trends in currency exchange rates are important for investors who invest outside their home currency zone. A foreign stock market index could move up but the currency for that market could devalue compared to your home currency. In that case, your gains measured in your home currency would reduce or could even turn negative.

EUR/USD Exchange Rate History and Trend Chart 20 years till May 2010
FOREX movements can have a large impact on the returns of a trend investor


We have applied the Stock Trend Investing approach to recognize trends in major stock market indices now also on a few major currency exchange rates. To get a better understanding of this, please read our free Trend Signals guide.

Trend Trading


We would not recommend using our EUR/USD Exchange Rate History and Trend Chart for pure forex trading. These charts are a high level tool to show the current trend in the exchange rates. Historically, exchange rate trends change much more abrupt than trends in stock markets and these changes can be rather large immediate after a turn in the trend.

But when making your decisions on in which part of the world to invest, it is important to be aware of the current trends in the exchange rates.


20 Year EUR/USD Exchange Rate


The charts are based upon the monthly average exchange rate (ask price) for each month.

So, what have we done to be able to give a 20 year historic perspective for the EUR/USD exchange rate? Simple. We have calculated for the first 10 years a hypothetical EUR/USD exchange based on the actual DEM/USD (Deutsche Mark) exchange rate and the DEM/EUR exchange rate at the moment the DEM was replaced by the EUR.

With the Deutsche Mark being the strongest European currency that went up in the Euro, we believe this is a valid approach to be able to give a unique historic perspective on the EUR/USD exchange rate. We haven’t seen so many other places where you can see how exchange rates have developed for a period of 20 years.



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Some perspective on the EUR / USD rate of 1.19 or 1.20

If you picture in the graph the current EUR / USD exchange rate of 1.19 or 1.20, you can see that this is historically a very normal rate. Even a drop to around 1.10 is not unprecedented.

I expect that the main drive for the decline in the Euro is not just the debt issues in some countries but more the lower expected economic growth in Europe compared to the US and Asia.

The question is if the Euro will stabilize between the 1.10 and 1.20 or if it will follow the path down like during during 1999 – 2001?

Other Historic Trend Investing Charts

See here the other historic trend investing charts that are published on this website.

Hi, I don't mean to

Hi, I don't mean to second-guess, but before the Euro was created, the contemporary members of the European Communities used a virtual currency called the ECU for some transactions. The ECU was calculated as a basket of all the member currencies, weighted by their home countries' economic power. Of course, the DEM had the largest share in the ECU, but it was still only about 22%. The historical composition of the ECU should be available somewhere, at least from the ECB if nothing else. When the Euro was set up, it was as a successor to the ECU, not the DEM. The Euro's value was primarily derived from the final balance of the ECU basket.


This is a very valid comment. Thanks. The ECU is a better indicator than the DEM for the EURO before 1999.

There are some exchange rate differences between DEM and ECU between 1990 and 1998 with the DEM being 5% weaker compared to the ECU in 1998 than in 1990 (see table below).

At a certain moment I will update the chart, using the ECU instead of the DEM before 1999. That chart will start with a  "Euro" that is about 5% weaker in 1990 than is shown currently in the chart.

DEM vs ECU exchange rate




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