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EU prepares strong response to possible 30% US tariffs — Reuters

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
Corporate growth supports Italian economy

Some European countries have maintained economic resilience despite aggressive US tariff policies and high trade risks. For instance, Italy's GDP growth is being supported by the success of major local companies. Many of them are revising their profit forecasts upward.

30 April
Corporate growth supports Italian economy
Bank of Greece governor backs ECB's cautious approach to further rate cuts

Yannis Stournaras, a member of the European Central Bank's (ECB) Governing Council, said the monetary authority should be cautious about additional cuts in borrowing costs due to global uncertainty.

30 April
Bank of Greece governor backs ECB's cautious approach to further rate cuts
Germany. German Retail Sales (MoM). The value of the indicator has decreased from 0.2% to -0.2%

A decrease of the indicator value may contribute to the fall in quotes of EUR.

30 April
Inflation expectations of eurozone consumers reached its year-high

Inflation expectations of eurozone residents, according to the monthly survey of the European Central Bank (ECB), increased significantly in March. Respondents forecast an acceleration in price growth to 2.9% in the next 12 months.

29 April
Inflation expectations of eurozone consumers reached its year-high
German consumer sentiment improves ahead of May — GfK institute

With a new government likely coming into power, German consumer sentiment picked up as May approached.

29 April
German consumer sentiment improves ahead of May — GfK institute
Pandemic-era fiscal support measures still push inflation higher – ECB

Support measures taken by European governments in response to the pandemic and other recent crises are still fueling inflation in the region, according to the European Central Bank's (ECB) bulletin.

29 April
Pandemic-era fiscal support measures still push inflation higher – ECB
Euro strength increase expectations of ECB's rate cuts and attract US attention

The strengthening of the euro is actively attracting officials’ attention, reinforcing expectations of more intensive interest rate cuts by the European Central Bank (ECB).

29 April
Euro strength increase expectations of ECB's rate cuts and attract US attention
De Guindos warns of volatile EU financial markets risk amid trade turmoil

European Central Bank (ECB) Vice President Luis de Guindos stressed the importance of closely monitoring unstable financial markets, particularly amid the risk of an uncontrollable decline. Despite the stability of the banking system, De Guindos emphasized the need to remain cautious.

29 April
De Guindos warns of volatile EU financial markets risk amid trade turmoil
Central bank may cut borrowing costs below neutral level — ECB's Olli Rehn

Olli Rehn, a member of the Governing Council of the European Central Bank (ECB), said on Monday that the financial regulator may lower borrowing costs below the neutral level. According to him, US tariffs will impact eurozone inflation more than expected.

29 April
Central bank may cut borrowing costs below neutral level — ECB's Olli Rehn
ECB to consider rate hike by year-end — Franklin Templeton

David Zahn of Franklin Templeton projects the European Central Bank will start considering rate hikes at the end of 2025. He believes increased defense spending to be the key driver of the region’s economic growth.

28 April
ECB to consider rate hike by year-end — Franklin Templeton

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.