The Eurozone faces slowing economic growth and subdued inflationary pressures, keeping the European Central Bank (ECB) in a dovish stance, while the U.S. economy remains resilient, supporting the dollar.

Monetary Policy Divergence: The ECB is expected to hold rates steady or lean dovish, while the Federal Reserve maintains a hawkish bias, emphasizing its "higher for longer" stance.

Weak Eurozone Fundamentals: Stagnant growth and lower energy prices are reducing inflationary pressures, further weighing on the euro.

Risk Sentiment: Renewed risk-off moves could strengthen the USD as a safe-haven currency.

Short EURUSD

Jan 16 2025