The common currency is mostly staying out of the headlines for now, as the summer months traditionally go by in Europe without much economic or policy news.
The economic backdrop in the Eurozone remains challenging, with PMIs indicating stagnation and a German manufacturing sector that has yet to show any substantial impact from the German fiscal package announced earlier in the year (we don’t expect this to be reflected until 2026).
The 15% tariffs agreed with the US remove the direst scenarios and should provide some certainty and clarity for businesses, but they also provide another headwind through what is set to be weaker external demand.
All in all, we think that it will be challenging for the euro to rally much further from here. That said, the Trump-Putin meeting will be closely watched on Friday, and any positive news here could provide some modest upside.
- Gold declines as US Dollar stays firm, geopolitical tensions persist
- GBP/USD Price Forecast: Sees more downside below 1.3430 amid dovish BoE bets
- GBP/JPY Price Forecast: Drifts lower as ‘bearish flag’ emerges
- FREE Forex signal for Monday 23/02/2026
- Gold bulls retain control near monthly top amid tariff jitters, dovish Fed bets, weak USD
Free Forex Signals 
Leave a comment