A Reuters survey indicates the eurozone economy remains resilient despite potential US tariffs. While the threat of 30% duties on EU goods poses risks, economists expect the European Central Bank (ECB) to keep rates unchanged at 2.0% at its July 24 meeting.
As reported by Bloomberg, European stocks outperformed their US counterparts in dollar terms during the first half of 2025. This signals a recovery in the region’s equity markets after more than a decade of stagnation.
According to statements by rating agency Scope on Friday, increased defense spending could weaken the creditworthiness of European governments. This may occur if they fail to reduce expenditures in other sectors and boost budget revenues.
A decrease of the indicator value may contribute to the fall in quotes of EUR.
An increase of the indicator value may contribute to the rise in quotes of EUR.
Eurozone consumer price growth remains moderate, despite some acceleration in France and Spain. In June, inflation in France inched up to 0.8% year-on-year from 0.6% in May, while in Spain it reached 2.2%, in line with expert expectations.
Euro trading volumes in the currency options segment exceeded $56 billion on Thursday. The growing interest in the euro is explained by an increase in so-called call options, which become profitable when the euro rises against the dollar.
ING analysts believe the euro could rise to 1.20 against the dollar, but this would require significant shifts in the current economic situation. Among the drivers for euro appreciation, experts cited changes related to existing trade tariffs, the US budget deficit, or the Federal Reserve (Fed).
According to information released by the country's Ministry of Finance, the French government needs to cut spending by an additional 5 billion euros (over $5.8 billion) to meet its target of reducing the budget deficit to 5.4% of GDP in 2025.
European Commission President Ursula von der Leyen announced that the EU has received the latest trade proposal from the US, though the specifics of Washington's demands remain undisclosed.
At a meeting on Thursday, German lawmakers passed a multibillion-euro package of tax breaks to support companies and bolster investment as part of their plan to restore growth in Germany's economy after two years of recession.
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.
