15 April 2025 | Euro

Strong euro poses risks to eurozone economy — Reuters

Strong euro poses risks to eurozone economy — Reuters

The euro's continued strength is raising concerns about potential damage to the eurozone economy, particularly amid escalating global trade tensions and currency conflict risks. The appreciating single currency may undermine both the region's economic recovery and inflation targets. This dual threat presents fresh complications for the ECB, Reuters analysis suggests.

The ECB might cut interest rates beyond expectations, lowering its benchmark to 2.25% instead of the predicted 25 basis-point reduction. The central bank may also halt its balance sheet reduction program, mirroring the Federal Reserve's recent decision to pause quantitative tightening.

The eurozone faces multiple economic threats, including currency overvaluation, US tariff policies, and growing competition from Chinese imports. These challenges emerge as Germany readies new fiscal stimulus measures to bolster the region's economy.

With price stability as its priority, the ECB must act quickly. Reuters anticipates the central bank will deploy available policy tools to counter deflation risks.

Elena Berseneva MarketCheese
Period: 03.08.2026 Expectation: 1500 pips
Go short on EURUSD as ECB and Fed meetings take center stage
Today at 11:06 AM 14
Gold sell
Period: 03.07.2026 Expectation: 122 pips
Gold is trying to get back on its feet before Fed meeting
Today at 10:18 AM 11
Period: 03.08.2026 Expectation: 140 pips
Invest in SPX ahead of Fed meeting
Today at 09:38 AM 17
Period: 03.08.2026 Expectation: 3440 pips
Silver is under influence of lower crude prices and weaker dollar
Today at 06:58 AM 9
Period: 24.08.2026 Expectation: 700 pips
Invest in AUDCAD up to 0.99000
24 July 2026 39
Period: 31.07.2026 Expectation: 1700 pips
GBPUSD might keep falling towards lower boundary of descending triangle
24 July 2026 46
Go to forecasts