No change of the indicator value may reduce the volatility of the related markets.
14 August
Euro News (EUR)
Categories
Increase in Germany’s spending raises economic risks across Europe
Bloomberg reports that Germany's increased government spending is driving up borrowing costs across Europe. According to the news agency, investors are concerned that highly indebted nations may struggle to pay interest on the debt.
21 March
A decrease of the indicator value may contribute to the fall in quotes of EUR.
21 March
ECB's Philip Lane voices support for creating digital euro
Philip Lane, chief economist at the European Central Bank (ECB), emphasized that the region needs to create its own digital currency now more than ever amid rising geopolitical tensions and rapid technological developments.
21 March
Holzmann proposes increasing banks' MRR to 5–10%
Robert Holzmann, head of the Bank of Austria, proposed raising the minimum reserve requirements (MRR) for banks from 1% to 5–10%. This measure would reduce implicit subsidies received by commercial financial institutions and strengthen the balance sheets of eurozone central banks.
21 March
Christine Lagarde, President of the European Central Bank, stated on Wednesday that it is impossible to plan further rate cuts due to risks associated with trade relations between the US and the EU. Given the current economic outlook, the regulator will make decisions based on incoming data.
20 March
Olli Rehn from ECB: increased defense spending in Europe will support economic growth
Olli Rehn, a member of the Governing Council of the ECB, stated that the European economy has already been negatively impacted by US President Donald Trump's import tariffs. However, increased defense spending by Germany could support the region's GDP growth in the medium term.
20 March
According to Eurostat data released on Wednesday, EU inflation fell to 2.3% in February, revised down from a preliminary estimate of 2.4%. The main factor contributing to the decline was the reforms implemented in Germany.
20 March
Bank of France losses mount due to ECB monetary policy implications
The Bank of France officials reported that its losses widened in 2024 due to rapid changes in the European Central Bank's monetary policy. The French regulator is facing simultaneous need to service high-interest deposits and get less income from bonds purchased when borrowing costs were low.
20 March
Bloomberg: EU to accelerate implementation of Capital Markets Supervision Plan
The European Union is accelerating the timeline for its proposals regarding a single supervision of capital markets, aiming to implement key measures by the end of 2025, according to Bloomberg.
20 March
UBS experts have revised their short-term fair value estimate for the euro-dollar pair to 1.08, up from the previous 1.06. This adjustment follows a decline in nominal yields on 2-year and real yields on 10-year Treasury bonds, which reacted to mixed data on the state of the US economy.
19 March
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.
