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 Donnery: eurozone banks are underestimating potential credit losses in auto sector
On Thursday, European Central Bank (ECB) official Sharon Donnery warned that eurozone financial institutions are not fully assessing potential credit losses in the automotive and commercial real estate sectors.
25 April
Weaker dollar raises concerns about US and European corporate earnings
The US dollar's decline is negatively impacting the profitability of European companies in the Stoxx 600 index, as 60% of their sales come from abroad.
24 April
Bundesbank head warns of recession risks in Germany due to US trade policy
Joachim Nagel, the head of the Bundesbank, expressed concern about a possible recession in Germany while analyzing the current economic situation. He believes that the US protectionist measures are negatively impacting the already stagnating European economy.
24 April
Germany’s economic outlook worsens due to US trade policies — Ifo
The Ifo Institute reported a drop in economic expectations in Germany in April. The Ifo index fell to 87.4 points in April, down from 87.7 in March, reflecting the negative impact of US trade policies. Analysts had expected a decline to 85 points.
24 April
Downfall of business activity in eurozone confirms negative effects of US tariff policy
Business activity of eurozone, reduced in April, reached its minimal rates over the last months. As shown by the composite PMI from S&P Global, which has declined to 50.1 points, the region is on the verge of stagnation. It’s just 0.1 point above the threshold between growth and contraction.
24 April
The European economy may face an increase in debt pressure, warns the International Monetary Fund (IMF).
24 April
ECB’s Muller suggests major rate cuts may be needed to boost eurozone economy
The European Central Bank (ECB) is likely to have to cut interest rates to levels that spur the economy if uncertainty in global trade starts weighing more heavily on the bloc’s GDP growth, according to ECB Governing Council member Madis Muller.
24 April
German Finance Minister expects government spending to increase amid economic downturn
Germany has always increased spending in times of economic hardship, Finance Minister Joerg Kukies said in a statement. According to him, during “good” times the country reduces its budget deficit and builds up reserves, while in “bad” times it spends significant funds to address problems.
24 April
The European Central Bank (ECB) Governing Council member and head of the French financial regulator Francois Villeroy de Galhau says that interest rates in Europe will decline further this year. In his opinion, there are no inflation risks in the region now.
24 April
Investors leave the US markets and massively reorient their portfolios to European funds, equities, and government bonds amid the announcement of US tariffs and subsequent turmoil in global markets.
23 April
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.
