A decrease of the indicator value may contribute to the fall in quotes of EUR.
16 July
Euro News (EUR)
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A survey by the Official Monetary and Financial Institutions Forum (OMFIF) found that one in three central banks plan to cut their dependence on the dollar and ramp up gold holdings over the next year or two.
24 June 2025
Merz cabinet approved Germany's draft budget for current year and medium-term financial plan
The Cabinet of German Chancellor Friedrich Merz has approved the budget for 2025 and medium-term financial plan. According to the documents, a substantial increase in government borrowing is expected in order to build up the country's military capabilities.
24 June 2025
Lagarde stressed ECB’s readiness to take action amid high uncertainty
European Central Bank (ECB) President Christine Lagarde stated that the regulator is prepared to respond to increasing economic uncertainty tied to global market tensions.
24 June 2025
France faces growing risks of another political crisis over pension reform disputes
As reported by Bloomberg, French authorities' negotiations over the pension reform, introduced in 2023 by Emmanuel Macron, have stalled. The controversy surrounding the pension reform may plunge France back into a period of uncertainty, hitting the country's economy.
24 June 2025
The European Central Bank (ECB) should only resort to large-scale bond purchases in "absolutely exceptional cases" given the significant losses caused by this monetary stimulus measure, according to Bundesbank President Joachim Nagel.
24 June 2025
Germany’s manufacturing and private sectors grow first time since 2022
The private sector in Germany resumed growth in the current month. It also demonstrated its best manufacturing performance since 2022, signaling positive prospects. The country's manufacturing sector is approaching the end of a three-year period of contraction.
24 June 2025
EU private sector PMI barely rose in June amid global geopolitical uncertainty
Business activity in the eurozone’s private sector showed almost no growth in June. Unpredictable US trade policies and global geopolitical tensions are preventing companies from formulating clear forward strategies, Bloomberg reports.
24 June 2025
An increase of the indicator value may contribute to the rise in quotes of EUR.
23 June 2025
Capital Economics forecasts modest rise in Germany's inflation following fiscal stimulus
Capital Economics forecasts that Germany's upcoming fiscal stimulus will have a minor impact on inflation. Despite the country's budget deficit rising from 2.8% of GDP in 2024 to 4% in 2026–2027, price growth is unlikely to exceed the European Central Bank's 2% target significantly.
23 June 2025
Analysts at Bank of America Securities keep a bearish stance on the dollar and forecast the euro to reach $1.17 by the end of the year. Still, in the short term, geopolitical tensions create risks for the European currency as well, they believe.
23 June 2025
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.
