21.08.202512:24:30UTC+00Euro Holds Narrow Range Following Trade Updates

On Thursday, the euro traded steadily around the $1.165 mark, maintaining a narrow range since the week's beginning and preserving most of the gains achieved this year. This stability came as markets evaluated new data and emerging developments in trade relations with the United States. Recent PMI figures indicated that economic activity in the Eurozone experienced its most significant rise in 15 months, driven by an increase in new orders and price indicators. This trend bolstered the case for fewer rate cuts by the European Central Bank, with ESTR futures suggesting a broad consensus for a 25 basis points cut within the year. Meanwhile, updates on the trade agreement between the European Union and the United States revealed that most European goods would face 15% tariffs, although products such as automobiles, pharmaceuticals, and semiconductors might be exempt from the higher sector-specific tariffs threatened by the US. Throughout the year, the euro has surged by 11% against the dollar as EU countries indicated plans to boost spending to support industry, infrastructure, and defense, amidst uncertain economic policies and fiscal challenges in the United States prompting a shift away from the dollar.