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The euro is experiencing its longest weekly slide against the dollar in eight months, as expectations grow for a half-point interest-rate cut by the European Central Bank in December. Economic weakness in the euro zone and the upcoming US presidential election are contributing to the euro's decline. Traders are now betting on a 40% possibility of a 50 basis-point ECB cut, while options markets indicate more challenges ahead for the euro. [Extracted from the article]

The cost of hedging the euro ahead of the US presidential elections is currently at its highest level in seven years, as polls indicate a close race. Investors are buying protection due to differing interest-rate trajectories in Europe and the US, with concerns about economic weakness in the euro-zone and potential inflation under a Donald Trump presidency. Implied volatility in the currency market has seen significant increases, with traders also preparing for the Federal Reserve's policy decision. The euro has fallen to its lowest level in over three months, with traders showing bearish sentiment towards the currency. [Extracted from the article]

Ivory Coast President Alassane Ouattara has expressed his desire for the Economic Community of West African States (ECOWAS) to implement a common currency by 2026, a year earlier than planned. Ouattara believes that Ivory Coast will be ready to meet the necessary convergence criteria by next year. ECOWAS, a 15-member organization, has been working towards a common currency for over two decades but has faced challenges in meeting the required criteria. Ouattara and Ghanaian President Nana Akufo-Addo have committed to collaborating with other West African countries to strengthen regional economic integration and achieve the goal of a monetary union. [Extracted from the article]

Options markets are indicating that the euro is set for its worst weekly decline since July, as traders anticipate that the European Central Bank (ECB) will cut interest rates next week. This sentiment is reflected in the bearish level of one-week risk reversals, a key options metric. The recent US jobs report has challenged the belief that the ECB will lag behind the Federal Reserve in cutting rates, which has diminished the appeal of the euro. Hedge funds have responded by increasing their bearish exposure on over-the-counter trades. The euro is currently trading near its lowest level since mid-August, and traders are positioning for a further weakening towards the $1.08 mark. Money markets are pricing in 45 basis points of easing by the Fed, compared to 48 basis points from the ECB. However, recent comments from San Francisco Fed President Mary Daly suggest that there may only be one more rate cut this year. The upcoming US inflation numbers will likely have an impact on the euro's performance. [Extracted from the article]

The German government has revised its GDP forecast for this year, predicting a contraction of 0.2%. This would mark the second consecutive year of shrinking GDP for Germany since reunification in 1990. Economy Minister Robert Habeck attributes the decline to structural problems such as energy security, bureaucracy, and a shortage of skilled workers. Concerns have been raised about Germany's economic decline, particularly in the auto sector. The government has implemented measures to boost the economy, but some industry leaders believe more needs to be done to address issues such as bureaucracy and high energy prices. [Extracted from the article]

European stocks had a slow start to the week due to profit warnings from automakers, which offset the positive impact of China's economic stimulus measures. The Stoxx 600 struggled to make progress, with Stellantis NV, Aston Martin Lagonda Global Holdings Plc, and Volkswagen AG all experiencing declines. In contrast, China's CSI 300 Index saw a significant jump after three major cities relaxed rules for homebuyers and the central bank lowered mortgage rates. The measures also led to outperformance among European mining stocks. Additionally, political developments in Europe and tensions in the Middle East were noted as potential risks. [Extracted from the article]

European stocks started the week with a decline due to profit warnings from automakers, offsetting the positive impact of China's economic stimulus measures. The Stoxx 600 slumped 0.7%, primarily driven by declines in automakers such as Stellantis NV and Volkswagen AG. In contrast, Chinese stocks, represented by the CSI 300 Index, surged by the most since 2008 following the country's stimulus measures. European miners and luxury stocks with a significant presence in China benefited from the rebound. However, experts caution that stronger tailwinds may be necessary for sustained growth in the region. Other factors that could impact the market include geopolitical tensions in the Middle East and upcoming corporate results. Traders will also closely monitor Eurozone inflation and manufacturing activity data, as well as the US jobs report. Political developments in Europe, such as Austria's response to the far-right Freedom Party's victory, pose additional risks. The Middle East situation is also tense following Israel's killing of Hezbollah's leader, Hassan Nasrallah, in Beirut. Oil prices rose as traders awaited Iran's response and reacted to China's stimulus measures. [Extracted from the article]

Chinese and Hong Kong equities experienced gains after Beijing implemented measures to address its property crisis. The CSI 300 index saw its largest daily gain in 16 years, and both iron ore and Chinese developer stocks surged following the easing of housing purchase rules in three major cities. However, Japanese stocks slumped, contributing to a decline in the MSCI Asia Pacific gauge. European markets were expected to have a lackluster start to the week due to downbeat outlooks from German and Italian automakers. Additionally, political developments in Europe, such as Austria's traditional powers pledging to block the far-right Freedom Party from forming a government, pose additional risks. The yen pared its previous gains, and the Australian and New Zealand dollar were lifted by hopes of Chinese stimulus. Chinese markets will be closed for the first seven days of October for a public holiday, and Hong Kong and Korea exchanges will be shut on Tuesday. Oil prices edged higher as the market awaited Iran's response to Israel's killing of Hezbollah's leader. Traders will closely monitor Eurozone inflation and manufacturing activity data, as well as the US jobs report, to assess the outlook for Federal Reserve rate cuts. [Extracted from the article]

European bonds have experienced a rally, indicating that an interest-rate cut by the European Central Bank (ECB) in October is increasingly likely. The rate on Germany's two-year note has fallen significantly, reaching its lowest level since December 2022. This shift in sentiment comes after data showed a contraction in the euro area's private-sector economy for the first time since March. Market expectations now suggest that there will be two quarter-point rate cuts by the end of the year, with an 80% chance of a rate cut next month. The euro currency has weakened as a result, and ECB Executive Board member Isabel Schnabel has expressed concerns about the stagnation of the euro zone's economy. [Extracted from the article]

According to JPMorgan Chase & Co. and Bank of New York Mellon, the Swiss franc is expected to reach its strongest level in almost a decade due to the Swiss National Bank's gradual interest rate cuts and its decision not to intervene to weaken the currency. Analysts predict that the franc will revisit levels last seen in 2015, between 0.92 and 0.90 per euro, by the end of the year. The franc's strength has been attributed to the belief that the SNB will cut rates less than the European Central Bank and the unwinding of carry trades. Swiss exporters have expressed concerns about the franc's appreciation, as it makes their exports more expensive. The SNB has indicated that it may further reduce rates to counter the currency's strength, and some experts believe that direct selling of the franc may be necessary once rates reach zero. Verbal interventions are unlikely to have a lasting impact on the franc's long-term strengthening trend. [Extracted from the article]

The Reserve Bank of Australia (RBA) has announced that it will focus on exploring the potential use cases for a wholesale central bank digital currency (CBDC) rather than a retail variant. Assistant Governor Brad Jones stated that a retail CBDC would pose significant challenges for financial stability and monetary policy implementation. The RBA will collaborate with industry on a new project to develop a wholesale CBDC and tokenized commercial bank deposits. The decision to pursue a retail CBDC would require a public policy case and legislative change, while the roadmap for a three-year digital money work plan includes an evaluation of a retail CBDC starting in 2026. [Extracted from the article]

Denmark's central bank, Nationalbanken, has cut its interest rate by a quarter-point to match the European Central Bank (ECB) and maintain the peg of the Danish krone to the euro. This is the second rate reduction by Nationalbanken this year. Economists surveyed by Bloomberg News had predicted this move, as the krone is trading close to its central parity rate and the Danish central bank has not intervened in the currency market. Analysts expect Nationalbanken to continue following the ECB's rate decisions in the coming years to maintain the currency peg. [Extracted from the article]

The European Central Bank (ECB) has cut interest rates for the second time this year due to concerns about the economy and receding inflation. The key deposit rate was reduced by 25 basis points to 3.5%, as predicted by analysts. ECB President Christine Lagarde emphasized that the bank will remain data-dependent and that the path and volume of future rate cuts are not predetermined. The ECB's decision comes as the euro zone's economy is losing momentum, with weak household support and sluggish demand from outside the currency area. The bank also lowered its GDP forecasts for the coming years. [Extracted from the article]

The European Central Bank (ECB) has cut interest rates for the second time this year due to concerns about the economy and inflation receding. The key deposit rate was reduced by 25 basis points to 3.5%, as predicted by analysts. The ECB stated that it cannot commit to a specific path for borrowing costs. The euro zone's economy is losing momentum, with weak demand from outside the single currency area and households failing to support the rebound. The ECB has also lowered its forecasts for gross domestic product (GDP) in the coming years. [Extracted from the article]

Denmark's central bank, Nationalbanken, has cut its interest rate by a quarter-point to match the European Central Bank (ECB) and maintain the peg of the Danish krone to the euro. This is the second rate reduction by Nationalbanken this year. The decision was widely expected, as the krone is trading close to its central parity rate and the Danish central bank has not intervened in the currency market. Nationalbanken typically follows the ECB's rate decisions to maintain the currency peg, but may deviate if the krone becomes too weak or strong. [Extracted from the article]

German inflation has dropped to 2% in August, reaching the European Central Bank's target and potentially paving the way for another interest rate cut next month. This reading is the lowest since 2021 and is lower than what most economists had predicted. The trend of disinflation is expected to continue in France and Italy as well. While some officials are in favor of a rate cut, others caution that there may still be setbacks in the fight against inflation. The ECB has not yet achieved its 2% goal, and wage gains are expected to slow in the coming years. The decision on whether to cut borrowing costs next month is still up for debate among policymakers. [Extracted from the article]

German inflation has dropped to 2% in August, which is the lowest level since 2021 and aligns with the European Central Bank's target. This supports the case for another interest rate cut next month. Price pressures have also eased in Spain, reaching a one-year low. The trend of disinflation is expected to continue in France and Italy as well. While some officials are in favor of a rate cut, others caution that there may be setbacks in the future and that underlying price growth remains strong. The ECB has not yet achieved its 2% goal, and the debate within the Governing Council about future steps may become more heated. [Extracted from the article]

Hungary's central bank has decided to keep its key interest rate unchanged at 6.75%, the highest level in the European Union, after 15 consecutive cuts. This decision comes after a rise in inflation and a weakening of the forint. The central bank is considering one or two more quarter-point cuts this year, but policymakers erred on the side of caution due to inflation exceeding their own forecast in July and breaching the upper bound of their target range. The forint strengthened after the rate decision, but it is still down 2.5% against the euro since the beginning of the year. [Extracted from the article]

The euro-zone economy experienced a surprising boost from the Paris Olympics, resulting in the fastest private-sector growth in three months. The composite Purchasing Managers' Index (PMI) rose to 51.2 in August, exceeding expectations. However, the manufacturing sector in the region continued to decline. Analysts predict that the euro zone will struggle to maintain its momentum, and there are calls for the European Central Bank to lower interest rates again. The PMI data also revealed growth in Japan's private sector, while the UK saw faster growth and cooler inflation. [Extracted from the article]

The Paris Olympics unexpectedly boosted the euro-area economy, leading to the fastest private-sector growth in three months. The composite Purchasing Managers' Index (PMI) rose to 51.2 in August, surpassing analysts' expectations. However, the manufacturing sector in the region continued to decline, and Germany's economy shrank more than anticipated. The data indicate that the euro zone may struggle to maintain its momentum, and there are calls for the European Central Bank to lower interest rates again. The PMI data is closely monitored by markets and can provide insights into economic trends. [Extracted from the article]

The Paris Olympics unexpectedly boosted the euro-zone economy, leading to the fastest private-sector growth in three months. The composite Purchasing Managers' Index rose to 51.2 in August, surpassing analysts' expectations. However, the manufacturing sector in the region continued to decline. Analysts predict that the euro zone will struggle to maintain its momentum in the first half of the year, and there are calls for the European Central Bank to lower interest rates again. The ECB may find some reassurance in the slow rise of input costs in the services sector. [Extracted from the article]

The euro has been steadily gaining against the dollar in August, reaching a one-year high. However, Federal Reserve Chair Jerome Powell's cautious tone could potentially reverse this momentum. Money managers and robo-traders have been betting on the euro, but concerns about European growth and the potential for less aggressive easing by the Fed could impact the currency's fortunes. While the euro's liquidity has contributed to its gains, there hasn't been a fundamental change in the outlook for the eurozone economy. [Extracted from the article]

The euro has reached its highest level against the dollar in one year as traders anticipate the Federal Reserve will lower borrowing costs at the Jackson Hole economic symposium. The European common currency has gained against most of its peers in the Group of 10. This increase is due to expectations that Fed Chair Jerome Powell will support the idea of more interest rate cuts by the central bank compared to the European Central Bank. However, the growth concerns in Europe do not necessarily support this rise in the euro. [Extracted from the article]

The euro has reached its highest level in a year as traders anticipate the Federal Reserve's Jackson Hole economic symposium. This surge in the euro comes as traders become more optimistic about the currency, with expectations that the Federal Reserve will cut interest rates more than the European Central Bank in the near future. The euro has risen 2.9% this month due to a weaker dollar and increased speculation about Fed rate cuts. [Extracted from the article]

German Finance Minister Christian Lindner has stated that the European Union's deficit rules do not allow for increased spending in Germany. Even if there was support in parliament for loosening the debt brake, European law would still prevent it. The German coalition government is struggling to finalize its 2025 budget due to a gap in funding, and government experts have raised concerns about the legality of some proposed measures. Lindner, known for his fiscal conservatism, emphasized the importance of adhering to EU rules to prevent a new debt crisis and maintain stability in the monetary union. [Extracted from the article]

Hungary's inflation rate increased to 4.1% in July, surpassing the central bank's tolerance band and reducing the possibility of further interest rate cuts. This rise in inflation has led to speculation about when the central bank will pause its monetary easing cycle. The forint strengthened against the euro following the release of the inflation data, while government bonds experienced a decline. Food costs in Hungary surged in July due to the removal of mandatory discounts for supermarkets on basic staples. [Extracted from the article]

The euro has reached its highest level in seven months, rising by 0.9% to $1.1008, due to indications that the US economy is weaker than previously believed. This has led to increased expectations of interest rate cuts by the Federal Reserve, making the dollar less attractive. While the European Central Bank has already implemented rate cuts, traders are speculating that the Fed may lower borrowing costs more aggressively than the ECB. The recent softening of US jobs and activity data has also contributed to the euro's strength. [Extracted from the article]

New York's $260 billion pension fund is pressuring Micron Technology Inc. to adopt a global policy of labor neutrality, allowing workers at the company's chip factories to form and join unions. Micron had agreed to discuss this with the Communication Workers of America (CWA), but the negotiations have been disappointing so far. A neutrality policy at Micron would reduce the likelihood of labor disputes and disruptions, according to New York State Comptroller Thomas DiNapoli. Micron is investing up to $100 billion in building chipmaking factories in upstate New York and is set to receive billions in grants, loans, and tax credits. [Extracted from the article]

Euro-area private-sector activity experienced minimal growth this month, with the composite Purchasing Managers' Index falling to 50.1, the lowest reading since February. The unexpected slump can be attributed to Germany, which contracted for the first time since March. France also failed to grow, although its reading of 49.5 outpaced most estimates. The data suggests challenges in reaching the inflation goal, and there is a possibility of a rate cut by the European Central Bank in September. [Extracted from the article]

Japanese authorities may intervene in the foreign exchange market and sell the euro if the euro-yen pair approaches the 180 level, according to analysts at Citigroup Inc. The euro-yen pair reached a record high of 175.43 on July 11 before falling. Japan has previously intervened in the currency market to support its currency against the US dollar, and it is estimated that 20%-30% of Japanese foreign reserves are held in euros. Any intervention in the euro-yen pair is expected to be smaller in scale compared to the dollar-yen pair due to limited trading volumes and liquidity. [Extracted from the article]

Japanese authorities may intervene in the foreign exchange market and sell the euro if the euro-yen pair approaches the 180 level, according to analysts at Citigroup Inc. The euro-yen pair reached a record high of 175.43 on July 11 before retreating. Japan has already conducted three interventions this year to support its currency against the dollar. The Bank of Japan is expected to make decisions on bond purchases and interest rates at its upcoming policy meeting, which could impact currency markets. Citi analysts suggest that if the dollar-yen pair rises to around 165 and the euro-yen pair threatens the 180 level, Japan may step in to sell euros and buy yen. [Extracted from the article]

The European Central Bank (ECB) supports the European Union's efforts to align budget policies in indebted nations with the region's fiscal rules, according to ECB President Christine Lagarde. Lagarde emphasized the importance of respecting the EU's economic governance framework and implementing it fully and promptly. This statement comes amid increased market scrutiny of the public finances of countries such as France and Italy, which have been criticized for running deficits above the EU's 3% limit. The ECB is concerned that rising public spending could contribute to inflationary pressures. [Extracted from the article]

Angela Rayner, the new deputy prime minister of Britain, has faced some challenges in establishing her power within Keir Starmer's administration. She has ceded parts of her policy portfolio to other Cabinet colleagues and has not yet established her own power base in Downing Street. Rayner was also passed over for the women and equalities brief, which would have made her the standard-bearer for identity issues. However, she still holds a central role in the Labour government and is currently preparing to launch the National Planning Policy Framework consultation. [Extracted from the article]

India's trade deficit narrowed in June as the country reduced its import bill and saw steady exports due to some recovery in global demand. The trade gap between exports and imports was $20.98 billion, in line with economists' forecasts. Exports grew 2.6% to $35.20 billion, while imports increased 5% to $56.18 billion. Imports of commodities such as gold and coal have decreased, while outbound shipments of engineering goods, electronics, and pharmaceuticals have increased. Services exports are also growing. The Indian government expects goods and services exports to exceed $800 billion in the current fiscal year. [Extracted from the article]

The euro has weakened in early Asia trading following initial projections of a surprise victory for the leftist alliance in France's legislative elections. The New Popular Front, which includes the Socialists and far-left France Unbowed, is expected to secure between 170 and 215 seats in the National Assembly, while Marine Le Pen's far-right National Rally is projected to come in third. This outcome has raised concerns among money managers, as the left alliance's commitment to increased public spending could worsen France's already-bloated balance sheet and strain its relationship with the European Union. The result is likely to introduce a new level of uncertainty into French assets in the coming days. [Extracted from the article]

The euro has weakened in early Asia trading following initial projections of a surprise victory for the leftist alliance in France's legislative elections. The New Popular Front, which includes the Socialists and far-left France Unbowed, is expected to secure a significant number of seats in the National Assembly. This outcome is seen as unfavorable by the market due to concerns over increased public spending and potential clashes with the European Union. While the left alliance is unlikely to achieve an absolute majority, the result introduces a new level of uncertainty for French assets. [Extracted from the article]

Jean-Marie Le Pen, the father of Marine Le Pen, has been declared unfit to stand trial alongside his daughter in a scandal involving the alleged misuse of European Union funds. The 96-year-old's health has deteriorated to the point where he is unable to defend himself against the accusations. The case revolves around suspicions that Marine Le Pen and other party members used EU funds to pay for staff working on domestic politics. The National Rally party, formerly known as the National Front, denies the allegations. The European Parliament is likely to seek over €3 million in damages. [Extracted from the article]

The largest union at Samsung Electronics, the National Samsung Electronics Union, has announced a three-day walkout beginning on July 8. The walkout comes after failed wage negotiations and follows a one-day strike on June 7, the first in the company's history. While the walkout has not yet disrupted operations, analysts suggest that it could have broader implications for the tech industry in South Korea and potentially lead to increased union activities or strikes at other companies. The union's demands include additional paid leave and a higher wage hike for certain workers. [Extracted from the article]

The euro has risen as traders analyze the results of France's legislative election, which indicate that Marine Le Pen's far-right party may win the first round with a smaller margin than expected. Initial projections show Le Pen's party in the lead, but potentially without enough votes to secure an absolute majority in the second round. Concerns have been raised about the possibility of expansive fiscal policy if Le Pen's party performs strongly, which could impact the nation's fiscal accounts and the outlook for the euro. The focus now shifts to the second round of voting on July 7 and whether Le Pen's party can gain enough support for an absolute majority. [Extracted from the article]

According to Bloomberg, the euro has slightly increased in value as Marine Le Pen's far-right party is expected to lead the first round of France's legislative elections. However, the margin of their lead is smaller than some polls had predicted. There are concerns that if Le Pen's National Rally wins, it could lead to expansive fiscal policy and bring attention to France's fiscal accounts, which could impact the euro's outlook. The focus now shifts to the second round of voting on July 7, where Le Pen's party will aim to secure an absolute majority in the National Assembly. [Extracted from the article]

The Swiss National Bank (SNB) did not intervene significantly in the first quarter of the year to influence the value of the franc, as it depreciated against the dollar and the euro. The SNB only bought currencies worth 281 million francs ($313 million) from January to March, compared to sales of 22.7 billion francs in the previous quarter. This suggests that Swiss officials were content with the franc's decline against major currencies and did not see a need to steer it in either direction. The SNB had previously intervened to prop up the exchange rate and reduce its balance sheet, but it appears that officials have now shifted their stance. The franc lost around 7% against the dollar and 5% against the euro in the first quarter. The SNB will release data for the second quarter in September. [Extracted from the article]

Bulgaria's plan to adopt the euro in 2025 has hit a roadblock as the European Central Bank (ECB) stated that the country does not meet the necessary conditions, primarily due to high inflation caused by the fallout from Russia's war in Ukraine. The ECB's convergence report, released every two years, highlighted limited progress in economic convergence with the euro area by non-euro area member states of the European Union since 2022. Bulgaria's 12-month average inflation rate in May was 5.1%, well above the reference value of 3.3% for the criterion on price stability. The country aims to become the 21st member of the euro zone, but it still has work to do to meet the criteria on public finances and inflation. [Extracted from the article]

The European Central Bank (ECB) has stated that Bulgaria does not meet the necessary criteria to adopt the euro as its currency. The main reason for this is that inflation in Bulgaria has exceeded the required threshold, largely due to the fallout from Russia's war in Ukraine. While Bulgaria aims to become the 21st member of the eurozone, it still has work to do in terms of economic convergence and meeting the inflation target. Political fragility and concerns about money laundering have also posed challenges for Bulgaria's euro adoption. Despite setbacks, Bulgarian officials are hopeful that they can still join the eurozone next year if they meet the inflation target. [Extracted from the article]

The Japanese yen has reached its weakest level ever against the euro, highlighting the ongoing depreciation of the currency. It fell by 0.3% to 171.60 against the euro, the lowest since the euro's creation in 1999. This decline has raised concerns about potential intervention by Japanese authorities to strengthen the exchange rate. The yen has also weakened against the dollar, reaching its lowest level since 1986. The Bank of Japan's loose monetary policy is seen as the main reason for the yen's weakness. [Extracted from the article]

The European Central Bank (ECB) has warned that Euro-zone members need to start reducing their debt immediately due to long-term fiscal risks from aging populations, defense spending, and climate change. The ECB states that these challenges will be faced simultaneously and action needs to be taken, especially in high-debt countries dealing with elevated interest rates. The necessary fiscal adjustment could amount to at least 5% of gross domestic product. The ECB also highlights the need for economic policies to gradually reduce public debt and prepare for the future. [Extracted from the article]

Emerging-market currencies weakened against the US dollar and a measure of volatility increased due to political risks following the rise of far-right parties in European elections. The Hungarian forint, Czech koruna, Romanian leu, and Polish zloty were among the currencies that performed poorly. Political uncertainty from upcoming elections in 40 countries, including France, Mexico, South Africa, and India, has caused market turbulence. The South African rand, however, rebounded as traders anticipated talks between political parties to form a coalition government. Argentina's dollar bonds also gained after lawmakers opposed President Javier Milei's pro-market reforms. [Extracted from the article]

Emerging-market currencies weakened against the US dollar and a measure of volatility increased following the rise of far-right parties in European elections. The Hungarian forint was the biggest loser after a defeat in the European Parliament vote led to an early election in France. Political risk is becoming a threat to emerging-market assets, with recent elections in Mexico, South Africa, and India causing asset prices to fall. The upcoming US presidential debate and the potential impact of Marine Le Pen's party in the French election may further increase uncertainty. The South African rand rebounded as talks between political parties to form a coalition government were anticipated. Argentine dollar bonds gained despite increasing volatility. [Extracted from the article]

Currencies in developing economies weakened after the European Union elections increased political risks, causing market volatility worldwide. The MSCI gauge for emerging currencies declined, with eastern Europe being particularly affected. The euro's weakness dragged down European currencies, with the Hungarian forint and Polish zloty both weakening. However, the South African rand bucked the trend and rose against the dollar, partially recovering from losses following an inconclusive election. The Mexican peso initially rose but later weakened after news of the President-elect's coalition falling short of the supermajority needed for constitutional changes. [Extracted from the article]

The euro has slumped to its lowest level in a month against the dollar due to increased political uncertainty in Europe. Far-right parties in France and Germany achieved significant victories in the recent European elections, leading to concerns about the future of European integration. Traders are expecting greater volatility and further losses for the euro as a result. The outcome of the elections has also raised questions about France's economic outlook and European resolve towards fiscal and financial integration. [Extracted from the article]

The euro-zone economy experienced a return to growth in the first quarter of the year, driven by exporters and consumers. Gross domestic product increased by 0.3%, ending the contraction from the previous quarter. Net trade and consumer spending were the main contributors to growth, offsetting declines in investment and inventory. This growth indicates a slow recovery for the 20-nation currency union after an inflation shock, with confidence in a sustained recovery building. However, growth is expected to remain subdued due to geopolitical tensions and ongoing struggles in the manufacturing sector. Different countries within the euro-zone experienced varying growth drivers, such as investment and tourism in Spain, capital spending and private consumption in France, and construction in Germany. [Extracted from the article]