Major European companies are facing turbulence from US tariffs. Despite the recent trade truce between the US and China, investors remain wary as uncertainty persists, Reuters reports.
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Bloomberg: EU to accelerate implementation of Capital Markets Supervision Plan
The European Union is accelerating the timeline for its proposals regarding a single supervision of capital markets, aiming to implement key measures by the end of 2025, according to Bloomberg.
20 March
UBS experts have revised their short-term fair value estimate for the euro-dollar pair to 1.08, up from the previous 1.06. This adjustment follows a decline in nominal yields on 2-year and real yields on 10-year Treasury bonds, which reacted to mixed data on the state of the US economy.
19 March
A decrease of the indicator value may contribute to the fall in quotes of EUR.
19 March
A decrease of the indicator value may contribute to the fall in quotes of EUR.
19 March
Germany's business sentiment index surged to its highest level since 2022 in March
The ZEW Institute's expectations index climbed from 26 in February to 51.6 in March, marking its highest level since the winter of 2022. Experts polled by Bloomberg had anticipated an increase to 48.3.
19 March
The majority of European companies fear an outflow of investments from Europe to the United States due to President Donald Trump's policies. According to a BusinessEurope survey, 85.7% of respondents believe that US policies pose a threat to the European economy.
19 March
German parliament passed debt rule reform
Reuters reports that the outgoing parliament of Germany on Tuesday passed the bill, proposing a massive rise in government borrowing and changes of the country’s debt rules.
19 March
Rising trade tensions and political instability in France slow its GDP growth
Global trade tensions and political uncertainty in France keep putting the European country's economy under pressure. Insee expects French GDP to expand by about 0.1% in the first three months of 2025.
19 March
ECB calls for change in banks' approach to liquidity
The ECB is calling on banks to prepare for reduced liquidity, recommending to develop IT infrastructure and train staff to work with new sources of funding, even though operational framework reforms are scheduled for 2026.
18 March
ECB: rapid housing market recovery in euro zone raises concerns around affordability
According to the European Central Bank (ECB), the housing market in the region has recovered from the recent downturn, and the prices are likely to continue rising. Such dynamics may negatively affect housing affordability, despite the softer monetary policy.
18 March
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.
