Euro strengthens against Canadian Dollar following German Retail Sales

The post Euro: Supported by ECB hikes and AI investment – BNP Paribas appeared on BitcoinEthereumNews.com. BNP Paribas projects Eurozone Gross Domestic Product (GDP) growth slowing from 1.5% in 2025 to 1.0% in 2026 and 1.3% in 2027, with inflation rebounding to 3.0% and 3.3%. Activity is seen withstanding the energy shock thanks to investment in defence, AI and electrification. The European Central Bank (ECB) is expected to deliver two 25 bp hikes in 2026, while EUR/USD is forecast at 1.21 by Q4 2026 and 1.25 by Q4 2027. Eurozone growth slows but stays resilient “Eurozone growth would slow due to spillovers from the Middle East conflict.” “GDP growth, which reached 1.5% in 2025, would slow down to 1.0% in 2026 and 1.3% in 2027, while inflation would rebound to 3.0% in 2026 and 3.3% in 2027 (compared to 2.1% in 2025).” “Activity would nevertheless withstand the energy shock, supported by investment in defence, AI, and electrification, which should continue to boost intra-EU trade.” “As

The post Euro wavers amid mixed Eurozone data, rising geopolitical tensions appeared on BitcoinEthereumNews.com. The Euro (EUR) holds marginal losses against the US Dollar (USD) on Monday, although the EUR/USD pair remains steady right below the top of the last two weeks’ range, at the 1.1660 area. Mixed Eurozone data and the rising tensions in the Middle East are weighing on risk appetite and acting as headwinds for the common currency. The US and Iran exchanged strikes earlier on Monday, adding strain to an already frail ceasefire, while Israel ramped up its operations in Lebanon, complicating the situation further. The US President Donald Trump is still due to sign a memorandum of understanding that would extend the ceasefire for 60 days. In Iran, the Parliament Speaker Mohammad Bagher Ghalibaf threatened retaliation in a post on X to “clear evidence of US noncompliance with the ceasefire.” In Europe, the HCOB Manufacturing Purchasing Managers’ Index (PMI) was revised up to 51.6 in

The post Canadian Dollar: Recession and jobs data weigh against US Dollar – BBH appeared on BitcoinEthereumNews.com. Brown Brothers Harriman (BBH) strategist Elias Haddad highlights that the Canadian Dollar (CAD) underperformed as weaker Oil and an unexpected technical recession hit sentiment. With Q1 Gross Domestic Product (GDP) contracting and labor data showing rising slack, Haddad argues that current Bank of Canada (BoC) hike pricing looks too aggressive and sees scope for USD/CAD to overshoot toward resistance at 1.3930, the January high, as rate expectations adjust lower. Weak growth challenges BoC pricing “CAD underperformed most major currencies last week undermined by a decline in crude oil prices and Canada’s economy unexpected entry into technical recession.” “Canada real GDP fell at an annualized pace of -0.1% in Q1 (consensus and Bank of Canada projection: 1.5%) and the contraction in Q4 was revised 0.4ppt higher to -1.0%. The decline in Q1 GDP may be exaggerated by a surg

The post Canadian Dollar weakens on risk-off mood, dovish BoC’s tone appeared on BitcoinEthereumNews.com. USD/CAD extends its gains for the second successive day, trading around 1.3810 during the early European hours on Monday. The pair appreciates as the US Dollar (USD) holds ground on increased safe-haven demand amid US-Iran peace uncertainty. The US ISM Manufacturing Purchasing Managers Index (PMI) report will be published later on Monday. The geopolitical landscape remains fluid as diplomatic channels between Washington and Tehran experience ongoing activity. Iranian Foreign Minister Abbas Araghchi confirmed that talks and message exchanges with the United States are currently underway. However, Araghchi maintained a cautious stance, emphasizing that it remains impossible to properly evaluate the trajectory of these negotiations until a definitive and clear outcome is officially reached. Adding momentum to these diplomatic efforts, US President Donald Trump has requested specific r

The post Euro holds losses against British Pound after Germany’s Retail Sales data appeared on BitcoinEthereumNews.com. The EUR/GBP cross trades in negative territory near 0.8655 during the early European trading hours on Monday. The Euro (EUR) remains weak against the British Pound (GBP) following the upbeat German Retail Sales data. The preliminary reading of the Harmonized Index of Consumer Prices (HICP) from the Eurozone will be released on Tuesday.  Data released by Destatis on Monday showed that German Retail Sales, a key measure of consumer spending, fell 0.3% MoM in April. This figure followed a fall of 0.3% (revised from -2.0%) and came in better than the market expectation of a 0.4% decrease.  On an annualized basis, Retail Sales dropped 0.3% in April, versus the prior release of a 0.2% decline (revised from -2.0%). The German economic data fails to boost the EUR in an immediate reaction.    On the UK’s front, BoE governor Andrew Bailey said on Friday that the UK central bank

The post Euro: Moves with yields and energy prices against US Dollar – Danske Bank appeared on BitcoinEthereumNews.com. Danske Research Team notes that EUR/USD ended last week around 1.1650 after a sharp drop in Oil prices, with US and Euro area yields both moving lower. They highlight upcoming United States (US) ISM Manufacturing Purchasing Managers’ Index (PMI), labor data and the Euro area HICP as key drivers. Euro area unemployment and PMI figures are expected to confirm a still-soft but stable recovery. Labor data and oil-driven swings “EUR/USD ended the week around 1.1650 following the big drop in oil prices. US interest rates fell back last week with the 10Y Treasury yield falling to 4.43% down more than 20bp from the top in mid-May. The impact on EUR/USD FX swaps was limited as interest rates in the euro area also fell.” “In the euro area, May flash inflation data from Germany, France, Italy and Spain (around 75% of the aggregate print) showed headline inflation rising mainly o

The post German Retail Sales decline by 0.3% MoM in April vs. -0.4% expected appeared on BitcoinEthereumNews.com. German Retail Sales, a key measure of consumer spending, declined again in April. The consumer spending measure fell 0.3% month-on-month (MoM), according to official data released by Destatis, while it was expected to have declined 0.4%. In March, Retail Sales dropped by 0.3% (revised from 2.0%) On an annualized basis, Retail Sales decreased 0.3%, compared to the prior release of a 0.2% decline (revised from 2.0%).  Market reaction No immediate reaction was observed in the Euro (EUR) after the data release. As of writing, the EUR/USD pair is down 0.04% on the day at 1.1655. Euro FAQs The Euro is the currency for the 20 European Union countries that belong to the Eurozone. It is the second most heavily traded currency in the world behind the US Dollar. In 2022, it accounted for 31% of all foreign exchange transactions, with an average daily turnover of over $2.2 trillion a d

Europe's reliance on dollar-pegged stablecoins could undermine its economic sovereignty, necessitating a robust euro-denominated alternative. The post Animoca Brands’ Yat Siu warns Europe about dollar dominance through stablecoins appeared first on Crypto Briefing.