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20.06.2025 11:25 AM
The Euro Will Retain Its Strength and Investor Interest

During her speech, IMF Managing Director Kristalina Georgieva stated that she sees the potential for the euro to play a broader role globally.Her remarks came amid growing geopolitical instability and increasing concerns about the fragmentation of the global economy. Georgieva emphasized that the eurozone has shown significant resilience in the face of recent shocks, including the COVID-19 pandemic and the energy crisis. She noted that coordinated fiscal and monetary measures by the European Central Bank and the governments of member states helped mitigate the negative effects of these crises and support economic growth.

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"The euro has the potential to become an even more important anchor of stability in the global economy," Georgieva said.

She added that realizing this potential requires further strengthening of economic and financial governance within the eurozone, as well as deeper integration of capital markets.

Georgieva also noted that strengthening the euro's role could benefit both the eurozone and the global economy. A stronger euro may boost trade and investment while reducing dependence on the U.S. dollar. However, according to Georgieva, achieving this goal will require overcoming several challenges. In particular, it is necessary to continue efforts to reduce debt levels in certain eurozone countries and improve the competitiveness of the European economy.

"There is a great opportunity for the euro to play a more significant role globally," she told reporters in Luxembourg on Thursday. "If you look at the demand for high-quality safe assets, at this stage it is constrained by limited supply."

Her comments echo those of other policymakers, including ECB President Christine Lagarde, who have urged Europe to seize the moment and turn President Donald Trump's attacks on global trade and U.S. institutions to its advantage.

Georgieva acknowledged that potential euro investors remain constrained by fragmented regulation, a lack of deep capital markets, an incomplete internal market, and high energy costs — but she added that these are barriers Europe can overcome.

"A dynamic, integrated European economy with more opportunities for equity investment and in innovative companies will attract capital flows into the single European currency," she said.

"As the EU moves toward higher defense spending and integration of its energy systems, this creates significant opportunities for asset growth," said Georgieva, who has led the IMF since late 2019. "Wherever I go, I see strong investor interest in Europe."

EUR/USD Technical Outlook

Currently, EUR/USD buyers should focus on breaking through the 1.1537 level. Only this will allow for a potential test of 1.1579. From there, a move toward 1.1628 becomes possible, though achieving this without support from major players could be difficult. The furthest target remains the 1.1670 high. In case of a decline, I expect notable buying activity only around the 1.1495 level. If no buyers emerge there, it would be advisable to wait for a retest of the 1.1450 low or consider entering long positions from 1.1410.

GBP/USD Technical Outlook

Pound buyers need to overcome the nearest resistance at 1.3425. Only then can they aim for 1.3445, above which breaking through will be quite challenging. The most distant target is the 1.3475 level. In the event of a decline, bears will attempt to regain control at 1.3385. If successful, a break below this range could severely undermine the bulls' positions and push GBP/USD toward the 1.3360 low, with a further possibility of reaching 1.3335.

Jakub Novak,
Analytical expert of InstaForex
© 2007-2025
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