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
ECB's Nagel and Escriva insist on weighing rate decision in June
Many ECB officials have stated the need to be cautious in determining the future course of monetary policy in the region due to Trump's uncertain tariff policy. Germany's Joachim Nagel and Spain's Jose Luis Escriva once again emphasized this point in a joint interview.
13 May
European Central Bank (ECB) Governing Council member Martins Kazaks supports further reduction in borrowing costs, yet urges caution in monetary easing.
13 May
German finance minister says spending may increase despite EU fiscal rules
German Finance Minister Lars Klingbeil said the European Union's debt obligations rules will not prevent the country's planned spending increase. Klingbeil also expressed confidence in reaching a compromise with the European Commission on this issue.
13 May
World's largest investors are betting on euro rise
Major investment companies believe that a surge in value of the European single currency is just at the beginning. For more than a decade, global capital has been flowing into the dollar, bypassing the euro. However, investors now expect this trend to reverse.
12 May
ECB’s Isabel Schnabel believes interest rates should be kept at current levels
The European Central Bank (ECB) board member Isabel Schnabel believes the bank should keep borrowing costs at the current level. The official says interest rates are no longer restricting EU’s GDP growth, while global economy turmoil is fuelling price pressures.
12 May
A recent Bloomberg poll indicates that economists anticipate further rate cuts from the European Central Bank (ECB) in 2025. Experts predict interest rates to dip below 2% as inflation is likely to fall below the regulator’s target level by early 2026.
12 May
ECB’s Vujcic expects inflation to fall to central bank’s target by year-end
Member of the European Central Bank’s (ECB) Governing Council Boris Vujcic believes the growth of consumer prices in the EU will hit the regulator’s target of 2% by the end of 2025. The official expects the annual inflation rate to fall and the price growth to stall in some months.
12 May
Morgan Stanley analysts forecast further strengthening of euro
The euro is currently posting its best performance in two decades. According to Morgan Stanley analysts, Germany's fiscal stimulus serves as the key driver attracting capital to Europe's economy. The experts note the euro still has further upside potential.
12 May
According to Deutsche Bank analysts, the European Central Bank (ECB) will cut borrowing costs three more times this year, bringing its key deposit rate to 1.5% by the end of 2025. However, the brokerage also warned of risks to this forecast.
12 May
A decrease of the indicator value may contribute to the fall in quotes of EUR.
9 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.
