A decrease of the indicator value may contribute to the fall in quotes of EUR.
A decrease of the indicator value may contribute to the fall in quotes of EUR.
Analysts at JPMorgan Chase have concluded that a quadruple cut in interest rates by the European Central Bank (ECB) is just a matter of course due to the negative impact of US trade policy on the EU economy.
Gediminas Simkus, a member of the Governing Council of the European Central Bank (ECB), expressed his support for an interest rate cut in April, citing the need to counter the negative effects of US President Donald Trump's trade policies.
The Bank of France has slightly raised its estimate of the country's economic growth for the first quarter. The central bank's monthly survey of 8,500 French companies, as well as other indicators point to a 0.2% increase in GDP in the period from January to March.
Likely higher inflation and global trade tensions following the introduction of tariffs by US President Donald Trump could delay the normalization of monetary policy in the euro zone, says Yannis Stournaras, European Central Bank (ECB) policymaker.
Central banks and their supervisors across the eurozone, the UK, and Switzerland have heightened scrutiny of financial institutions and markets following a global stock sell-off triggered by aggressive US trade policies, Reuters reports.
The Sentix survey showed that Eurozone investor sentiment fell to its lowest level in more than a year in April amid tightening import tariffs in the US. The index dropped from -2.9 in March to -19.5 in April, marking a new low since October 2023.
New import tariffs announced by US President Donald Trump strengthened the case for the European Central Bank to cut interest rates at its April 17 meeting. Besides, the pace of monetary easing is expected to gain momentum.
Following the implementation of tariffs by the United States, the European Union has decided to establish a task force on import monitoring to control possible evasion of duties. This announcement was made by Ursula von der Leyen, the head of the European Commission.
Germany’s industrial production contracted 1.3% in February, exceeding analysts’ expectations of a 1% drop. The fall was driven by a decline in construction activity, as well as a drop in food and energy production, Bloomberg reports, citing official statistics.
Greek Central Bank Governor Yannis Stournaras told the Financial Times that US tariffs risk shaving 0.5–1% off eurozone GDP growth. Stournaras argued that US trade policies are creating unprecedented uncertainty for the global economy.
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.
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:
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.