Bank of America confirms its forecast for the euro to strengthen against the US dollar. The bank expects the currency pair to reach 1.17 by the end of 2025. The current euro exchange rate appears stronger against the greenback.
Germany's cabinet, led by Chancellor Friedrich Merz, has approved a package of tax breaks for national companies worth €46 billion (roughly $52 billion). These measures are part of the new German government's strategy to revive the country's economy.
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.
Italy's labor market showed encouraging signs in April, with the unemployment rate falling to 5.9% from 6.1% in March, according to the latest data from the National Institute of Statistics (ISTAT).
The number of people registered as unemployed in Spain dropped below 2.5 million in May, which is the lowest level since the global financial crisis hit nearly 17 years ago, the country’s Labor Ministry reported.
The May inflation rate for the 20 eurozone countries dropped below the 2% target set by the European Central Bank (ECB) to 1.9%. Reuters experts had predicted that consumer prices in the region would rise by 2% last month.
In May, Spain's manufacturing sector showed signs of revitalization, marking the first period of growth since the beginning of 2025. According to experts surveyed by Reuters on Monday, the partial removal of tariffs by the United States boosted business sentiment in the European nation.
Despite consecutive interest rate cuts by the European Central Bank (ECB), the euro continues to gain strength, Reuters reports. Over the past four months, the currency has appreciated over 10% against the dollar, hitting record levels in the trade-weighted index.
A decrease of the indicator value may contribute to the fall in quotes of EUR.
A decrease 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.
