Euro Under Pressure, Eurozone Economy Weakens
The euro continues to lose ground against the US dollar, with the EUR/USD pair now trading around ≈ 1.1500—its lowest in three months.
The strengthening of the US dollar is driven by expectations that the Federal Reserve (The Fed) will maintain high interest rates for longer and delay rate cuts.
Meanwhile, the eurozone is showing signs of weakness: weak economic data and unstable sentiment are adding pressure on the euro.
Furthermore, banks such as Societe Generale project that EUR/USD could weaken to around 1.14 by the end of 2026 if the current trend continues.
For eurozone exporters, a weaker euro could improve the competitiveness of their products in the global market by making them cheaper in foreign currencies.
For investors and foreign exchange market participants, this trend is a cautionary signal: the euro appears to be in a short-term bearish momentum.
The euro's weakness could also impact other assets, for example, driving capital flows to the US dollar and other safe-haven assets. (CP)
Source: Newsmaker.id
