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.
President of the European Central Bank (ECB) Christine Lagarde has called on policymakers to seize the moment and strengthen the global role of the euro, as US President Donald Trump’s trade policies undermine confidence in the dollar.
Analysts at ING have indicated that the euro may exhibit limited growth potential against the US dollar, attributing this outlook to the eurozone's substantial reliance on energy imports. They note that recent volatility in fuel prices has further exacerbated this structural vulnerability.
A Bloomberg survey revealed that analysts still expect the European Central Bank (ECB) to ease monetary policy by a quarter point in September, which would bring the deposit rate to 1.75%.
The European Central Bank (ECB) is getting closer to its 2% inflation target. President Christine Lagarde confirmed this but warned that uncertainty from US tariffs could still pose risks.
According to a Bloomberg analyst survey, Germany's economy is set to resume growth in 2025 following a two-year contraction. The agency's experts are more optimistic about the country's near-term prospects compared to other forecasting institutions.
An increase of the indicator value may contribute to the rise in quotes of EUR.
According to European Central Bank (ECB) Executive Board member Isabel Schnabel, the regulator’s interest rates are currently in a “good place”. She noted that price growth will likely return to the ECB’s 2% medium-term target.
According to European Central Bank (ECB) Vice President Luis de Guindos, US tariffs will put pressure on economic growth and the cost of goods and services in the eurozone for years to come. However, the risk of an excessive inflation slowdown is low.
According to data published by the EU statistics agency, the bloc's trade surplus in April amounted to €7.4 billion, lower than the €12.7 billion recorded in April 2024. Nevertheless, exports of European goods to the US increased during this period, despite Trump's tariff policy.
An increase of the indicator value may contribute to the rise in quotes of EUR.
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.
