Concerns about the European economy are growing due to political instability in Germany and France, as well as possible tariff increases under the next Trump administration. This has led the European Central Bank (ECB) to accelerate its rate cuts.
On the other hand, the U.S. economy appears stronger, with the new Trump administration focusing on a “strong America.” The difference between the economic and monetary policies of Europe and the U.S. is becoming more obvious. As a result, this week’s FOMC (Federal Reserve) meeting is gaining attention.
The Fed’s forecast for next year’s rate cuts has decreased from four cuts to two. If this outlook is confirmed, it could lead to further selling of the euro.
This week, there will be key economic data releases, such as Germany’s PMI and ZEW index, the Eurozone’s HICP, and important U.S. reports like retail sales and the PCE deflator. These may cause some market fluctuations, but in the end, the euro is expected to continue weakening.
Euro-dollar forecast range: 1.0580–1.0400
Note: The above information does not guarantee profits. Please make your own decisions when trading.