The UK may regain some of its former prominence as a European manufacturing hub if Donald Trump implements proposed 30% tariffs. Alex Altmann of Lubbock Fine suggests the UK's available production capacity could attract EU-based companies looking to avoid steep US tariffs.
Macquarie analysts forecast further upside for the euro-dollar pair, citing diverging monetary policies between the European Central Bank (ECB) and the Federal Reserve (Fed).
The latest interest rate changes aim to help the European Central Bank (ECB) achieve its medium-term inflation target, President Christine Lagarde said. She believes that the latest monetary policy decision was "well calibrated".
Andrea Nahles, head of Germany's Federal Employment Agency, has warned that the country could lose up to 90,000 jobs by the end of this year. She attributes this potential decline primarily to current US trade policies.
Isabel Schnabel, a member of the Executive Board of the European Central Bank (ECB), stated that the current moment presents an ideal opportunity to strengthen the euro's position. These remarks overlap with statements from other policymakers, including ECB President Christine Lagarde.
An increase of the indicator value may contribute to the rise in quotes of EUR.
The eurozone economy expanded at twice the expected rate in the first months of 2025, fueled by surging exports from Ireland and Germany following the implementation of new US trade tariffs. According to Eurostat's Friday release, the eurozone's GDP grew by 0.6% quarter-on-quarter.
Yesterday, the ECB cut deposit rates in the eurozone for the eighth time since June 2024. ECB Governing Council member Yannis Stournaras believes that the cycle of monetary policy easing in Europe is nearing its end. Bank of France Governor Francois Villeroy de Galhau shares his view.
Germany’s industrial production and export fell in April, dashing hopes for a recovery in the nation’s critical economic sector amid looming US import tariff threats. Compared to March, Germany's industrial output declined by 1.4%, while exports fell by 1.7%.
An increase of the indicator value may contribute to the rise in quotes of EUR.
A decrease of the indicator value may contribute to the fall 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.
