A Reuters survey indicates the eurozone economy remains resilient despite potential US tariffs. While the threat of 30% duties on EU goods poses risks, economists expect the European Central Bank (ECB) to keep rates unchanged at 2.0% at its July 24 meeting.
Analysts at Bank of America Securities keep a bearish stance on the dollar and forecast the euro to reach $1.17 by the end of the year. Still, in the short term, geopolitical tensions create risks for the European currency as well, they believe.
At the end of last week, EU governments decided to raise the European Investment Bank's (EIB) lending limit to €100 billion ($115 billion) for 2025. Additionally, the organization's funding for the region's defense industry may be tripled.
No change of the indicator value may reduce the volatility of the related markets.
An increase of the indicator value may contribute to the rise in quotes of EUR.
According to Mario Centeno, representative of the European Central Bank (ECB) and head of the Portugal’s financial regulator, the eurozone economy is “weak” and needs “further stimulus” from the region's central bank.
Inflation and external economic challenges continue to restrain the growth of the French economy. In June, the Insee business sentiment index unexpectedly stood at 96 points, against the anticipated 98, according to data from the national statistical agency.
According to five sources familiar with the matter who spoke to Reuters, European officials are starting to come to terms with the possibility of mutual 10% import tariffs with the US after enduring lengthy negotiations.
Euro-based stablecoins could rival their dollar counterparts by 2028, according to Fiorenzo Manganiello, founder and managing partner of LIAN Group.
If the European Central Bank (ECB) decides to adjust borrowing costs within the next six months, it would most likely be a rate cut, stated Governing Council member Franсois Villeroy de Galhau. Earlier this month, the ECB signaled a pause in its monetary easing cycle.
Europe is at risk of falling into stagnation, the International Monetary Fund (IMF) warns. To prevent this, the continent must address slowing economic growth, boost investment, and counter geopolitical threats.
The European currency is one of the world's major monetary units. It has a crucial role to play in the global economy. Market participants constantly need to identify trends and forecast fluctuations in the euro exchange rate in order to make reasonable trading decisions.
Market manipulation by large investors has a significant impact on the exchange rate of the European currency. Their actions can both stabilize and greatly shake the money market. These may include:
Investment activity monitoring can help to understand and predict trends in the movement of the European currency rates.
Forecasting the value of the euro is a challenging task. There are many reasons for this, including geopolitical and economic risks that make foreign exchange markets particularly susceptible to change. Minor political instability or financial crisis in certain countries may have a significant impact on the value of the European currency, emphasizing the need to carefully consider these factors when developing investment strategies.
Successful trading the Eurozone currency requires a comprehensive approach. Analyzing global political and economic circumstances, taking into account the influence of traders, and assessing risks are integral parts of the decision-making process for opening trading positions.
