What drives the euro?

The eurozone's shared currency is shaped by ECB policy, diverging economies, and energy dependence. Each row traces a chain of real events that pushed the euro higher or lower, month by month.

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MAY 1 – MAY 31, 2026
MAY 18 Closed: −0.41%
🇺🇸 Sanctions Waiver Proposal 2026-05-18
EURO ▲ 2026-05-18
US sanctions waiver proposal raised hopes for Middle East peace, boosting euro.
MAY 15 Closed: −0.46%
🇮🇷 Conflict Escalation 2026-05-11
🌍 Energy Price Rise 2026-05-11
Conflict escalation disrupts oil supply, raising energy prices globally.
🇪🇺 Inflation Expectation Rise 2026-05-14
Higher energy costs increase production and living expenses, leading to expectations of faster inflation.
🇪🇺 Inflation Rise 2026-05-14
Higher energy prices raise inflation expectations, leading markets to expect ECB rate hikes.
EURO ▼ 2026-05-15
Expectation of rate hikes strengthens euro, but here euro fell due to war damage concerns.
MAY 13 Closed: −0.38%
🇺🇸 Trade Talk Uncertainty 2026-05-13
EURO ▼ 2026-05-13
Stalled US-Iran talks create uncertainty, reducing demand for the euro and causing it to fall.
🇮🇷 Military Strike 2026-05-08
🌍 Oil Price Rise 2026-05-08
US-Iran hostilities disrupted oil supply, pushing prices higher.
🇪🇺 Inflation Expectation Rise 2026-05-11
Rising oil prices increase production costs, fueling fears of higher inflation.
🇪🇺 Inflation Rise 2026-05-11
Rising oil prices increase inflation concerns, leading to expectations of tighter ECB policy.
EURO ▼ 2026-05-13
Expectations of ECB rate hikes strengthen the euro, causing depreciation only if other factors dominate.
MAY 12 Closed: +0.09%
🇮🇷 Geopolitical Tension Rise 2026-05-12
EURO ▼ 2026-05-12
Geopolitical tensions with Iran weakened the euro as investors sought safer assets.
MAY 8 Closed: −0.13%
🇪🇺 Inflation Expectation Rise 2026-05-08
🇪🇺 Inflation Rise 2026-05-08
Renewed inflation concerns lead markets to expect ECB rate hikes.
EURO ▲ 2026-05-08
Expectation of ECB rate hikes makes euro more attractive to investors, boosting its value.

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MAY 7 Closed: +0.27%
🇮🇷 Geopolitical Agreement Optimism 2026-05-06
🇺🇸 Safe-Haven Demand Decline 2026-05-06
Optimism over a US-Iran deal reduced demand for the safe-haven dollar.
EURO ▲ 2026-05-07
Less safe-haven demand for the US dollar weakens it, causing the euro to appreciate.
MAY 6 Closed: +0.2%
🇺🇸 Us-Iran Deal Optimism 2026-05-06
EURO ▲ 2026-05-06
Optimism over a US-Iran deal reduces safe-haven demand for the dollar, boosting the euro.
🇺🇸 Geopolitical Agreement Optimism 2026-05-06
EURO ▲ 2026-05-06
Optimism over a US-Iran deal reduced safe-haven demand for the dollar, boosting the euro.
MAY 4 Closed: −0.02%
🇺🇸 Tariff Rise 2026-05-04
EURO ▼ 2026-05-04
US tariffs on EU cars raise costs, potentially weakening the euro, but the euro was steady.
MAY 1 Closed: +0.38%
🇪🇺 Interest Rate Hold 2026-05-01
EURO ▲ 2026-05-01
The ECB held rates steady but signaled possible future hikes, boosting the euro.
APR 1 – APR 30, 2026
APR 30 Closed: −0.28%
🇪🇺 Interest Rate Hold 2026-04-30
EURO ▲ 2026-04-30
ECB held rates steady, signaling future hikes, which boosted euro demand and value.
APR 29 Closed: −0.04%
🇺🇸 Military Strike 2026-04-24
🌍 Energy Price Rise 2026-04-24
Military strike threats and blockades disrupt oil supply, pushing energy prices higher.
🇺🇸 Treasury Yield Rise 2026-04-29
Higher energy prices push central banks toward tighter policy, raising expectations of rate hikes.
EURO ▼ 2026-04-29
Expectation of higher US rates strengthens the dollar, making the euro weaker.
APR 24 Closed: −0.19%
🇮🇷 Diplomatic Negotiation Progress 2026-04-24
EURO ▲ 2026-04-24
Optimism about US-Iran peace talks boosted investor confidence, strengthening the euro.
🇺🇸 Military Strike 2026-04-20
🕌 Geopolitical Tension Rise 2026-04-20
The US Navy firing on an Iranian ship directly increased regional tensions.
EURO ▼ 2026-04-24
Geopolitical tension in the Middle East reduces investor confidence, weakening the euro.
APR 22 Closed: −0.34%
🕌 Ceasefire Optimism 2026-04-22
EURO ▲ 2026-04-22
Ceasefire extension reduces geopolitical risk, boosting investor confidence in the euro.
APR 21 Closed: +0.37%
🕌 Conflict Escalation 2026-04-21
EURO ▼ 2026-04-21
Escalating Middle East tensions disrupt Europe's energy security, making the euro less attractive to investors.

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