According to Jeremie Peloso, Chief Europe Strategist at financial advisory firm BCA Research, the euro is in the early stages of a multi-year bull market that could eventually take EUR/USD to 1.40.
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Eurozone services sector returned to moderate growth in June
The eurozone services PMI, compiled by S&P Global, rose from 49.7 in May to 50.5 in June. The composite PMI jumped to 50.6, reaching a three-month high, but still indicating only modest growth, Reuters reports.
4 July
According to strategists at Deutsche Bank AG, investors will increasingly redirect capital flows from US bonds to Europe. This development aligns with the accelerating policy of "de-dollarization." They also predict investors will continue reducing their exposure to the dollar and US assets.
3 July
France's Court of Auditors warns of serious negative consequences of nation's budget problems
As head of the French Court of Auditors Pierre Moscovici said on Wednesday, France must get its public finances back on track this year. Otherwise, pressure from financial markets will follow.
3 July
ECB's Pierre Wunsch advocates maintaining stable monetary conditions in eurozone
Belgian Central Bank Governor Pierre Wunsch suggested that eurozone inflation might remain below the European Central Bank's (ECB) target. He argued that the regulator should take a measured approach to rate cuts due to weak economic growth and inflation risks in the bloc.
3 July
Olli Rehn, a member of the European Central Bank's (ECB) Governing Council, argues that European countries should increase defense spending to strengthen the euro’s international role.
3 July
An increase of the indicator value may contribute to the rise in quotes of EUR.
3 July
No change of the indicator value may reduce the volatility of the related markets.
3 July
An increase of the indicator value may contribute to the fall in quotes of EUR.
2 July
Further euro appreciation could weaken eurozone economy — Bloomberg
Strengthening of the euro may have a negative impact on the European Union's economy, Bloomberg columnist Marcus Ashworth says. A strong euro can slow down the already anemic recovery of EU GDP, he emphasizes.
2 July
European Central Bank (ECB) officials are worried that the euro's rapid rise could derail the regulator's efforts to keep inflation at 2%. The currency has already gained 14% against the dollar this year, according to Bloomberg.
2 July
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.
