EUR/USD Under Pressure Due to Positive US Dollar Sentiment
In July 2025, the US dollar recorded a gain of around +2.1%, its strongest monthly performance since 2019. This strengthening was driven by expectations of US monetary policy, particularly the prospect of a Fed interest rate cut, plus positive returns from the successful US-Europe and Asia trade deals.
Market sentiment weakened towards the euro due to perceived imbalanced bargaining power and the squeeze on speculators betting on USD weakness.
Eurozone economic data showed inflation of around 2.4% (February 2025) and unemployment of 6.2% (January 2025), with the ECB's benchmark interest rate at 2.5%—still relatively stable compared to the US.
Overall, the euro's appeal in the global reserve market remains strong, but external pressures are dominating short-term sentiment.
Temporary sentiment supports USD strengthening and EUR weakening, as the ECB's policy uncertainty is more passive than the Fed's.
According to the TradingView platform, technical indicators for EUR/USD are indicating a "sell" signal today.
EUR/USD's latest movement was around 1.1584–1.1585, a slight increase of 0.08% compared to the previous day.
The pair's support level is at 1.1407, while its main resistance is at 1.1703.
Source: Newsmaker.id
