According to Reuters, France and Germany are weighing possible countermeasures against the US if talks with the Trump administration fail to produce an agreement.
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Euro strengthens despite ECB rate cuts — Thomson Reuters
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.
3 June
A decrease of the indicator value may contribute to the fall in quotes of EUR.
3 June
A decrease of the indicator value may contribute to the rise in quotes of EUR.
3 June
A decrease of the indicator value may contribute to the fall in quotes of EUR.
3 June
Fresh inflation data will be key to further ECB rate decisions – Reuters
This Tuesday, the main event of the day for Europe will be the release of inflation data for May. As forecast by analysts quoted by Reuters, last month's consumer price growth in the eurozone slowed to 2.0% year-on-year. This data will be key to the European Central Bank rate dynamics.
3 June
German production volumes and export orders rose in May
In May, manufacturing activity in Germany declined. However, this sector saw growth in output volumes for the third month in a row, driven by an ongoing increase in new export orders.
3 June
According to the Bank of America (BofA) model, market participants remain bearish on the dollar, particularly against the euro and the British pound.
2 June
Business activity in Europe's manufacturing sector keeps stabilizing
In May, the Purchasing Managers' Index (PMI) for the eurozone manufacturing sector rose to 49.4 and reached a 33-month high. The index growth matched preliminary estimates, but remained below the 50.0 threshold separating expansion and contraction.
2 June
After this week's rate cut further ECB moves are in question – Bloomberg
According to Bloomberg, the European Central Bank is set to cut the deposit rate this week, lowering it to 2%. However, this will be the last easy decision for the regulator, as analysts quoted by the agency said, as further action is complicated by uncertainty.
2 June
German Bunds to help protect eurozone from yield curve steepening too much – Reuters
Global markets are experiencing a sell-off in government bonds amid concerns over mounting sovereign debt of major world economies. However, as noted by Reuters, the selling in the eurozone is likely to slow down soon, facilitated by the increasing interest in Bunds as safe havens.
2 June
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.
Key drivers of the euro are the following:
- Macroeconomic indicators such as consumer price indices (CPI), estimates of gross domestic product (GDP), and central bank decisions;
- Political variables such as geopolitical stability and government policies.
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:
- large injections or withdrawals of currency from the market;
- change in the general mood among investors, which often depends on economic and political conditions.
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.
