EUR/USD Under Pressure, US Dollar Strengthens Again Ahead of New Year
The EUR/USD pair recorded a weekly low around 1.1740 in Asian trading on Wednesday. Pressure came from a strengthening US dollar, even though the minutes of the December FOMC meeting showed that most Federal Reserve officials supported the possibility of further interest rate cuts in the future. Trading volume was relatively thin as investors held back ahead of the New Year holiday.
The US Dollar Index (DXY) strengthened to a weekly high around 98.25, reflecting positive sentiment toward the US currency. The FOMC minutes confirmed that an interest rate cut is likely if inflation falls as expected, while officials also emphasized the need to maintain a neutral policy stance to support the labor market. Markets now expect the Fed to cut rates by at least 50 basis points throughout 2026.
Meanwhile, the euro traded sluggishly with limited movement. The European Central Bank (ECB) is not expected to make any changes to its monetary policy in early 2026, as Eurozone inflation remains close to its 2% target. This situation has left the Euro relatively stagnant, while the US Dollar remains strong heading into the new year. (az)
Source: Newsmaker.id
