According to Reuters, France and Germany are weighing possible countermeasures against the US if talks with the Trump administration fail to produce an agreement.
23 July
Euro News (EUR)
Categories
Europe's economic outlook is clouded by three key issues – Capital Economics
According to strategists at Capital Economics, the improvement in investor sentiment regarding Europe's economic prospects may be overshadowed. The company's experts have identified three key issues the region is facing.
19 May
ECB sees euro becoming alternative to dollar as reserve currency
European Central Bank (ECB) President Christine Lagarde attributes the recent euro appreciation against the dollar to Donald Trump's unstable policies. Additionally, she sees an opportunity for the bloc’s currency to increase its international role.
19 May
Pierre Wunsch, the head of the central bank of Belgium, suggests that the European regulator will probably have to cut interest rates to just under 2%, citing global trade tensions that create risks of rising inflation and a slowing economy.
19 May
An increase of the indicator value may contribute to the rise in quotes of EUR.
16 May
Eurozone industrial production unexpectedly rose in March
According to Eurostat, industrial production in 20 eurozone countries grew significantly in March, exceeding forecasts. Reuters suggests this indicates the two-year recession in the sector is coming to an end.
16 May
Barclays sees US recession risk fading due to warming relations with China
Barclays has revised its US economic growth forecast upward, ruling out the possibility of a year-end recession. The bank's decision comes as trade tensions between Washington and Beijing ease.
16 May
The European Central Bank (ECB) Governing Council Member Martins Kazaks, analyzing the eurozone inflation outlook, suggested during a CNBC interview that the rate-cutting cycle may be nearing completion.
16 May
Trade tensions combined with high debt pose risks to EU economy — Luis De Guindos
Luis de Guindos, the vice president of the European Central Bank (ECB), named three main risks to the eurozone economy. In his opinion, these are global trade tensions, financial market volatility, and high government debt.
16 May
An increase of the indicator value may contribute to the rise in quotes of EUR.
16 May
France’s unemployment rate rose to 7.4% at start of 2025
France’s unemployment rate increased at the start of the year, adding to signs of a slowdown in the EU’s second-largest economy, even before US trade tariffs further darkened its outlook.
16 May
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.
