Author: Lila Harrington
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EUR/USD Weekly Outlook – January 20, 2025: Parity in Sight as Dollar Strengthens Amid Global Economic Shifts
Trump is officially the new president of the United States, and now the market awaits clarity on the much-discussed protectionist measures. The forex market remains volatile, with the euro struggling to recover after better-than-expected U.S. inflation data. Meanwhile, in Germany, it is now certain that 2024 will be marked by another economic recession.
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Weekly EurUsd Outlook, January 13, 2025 – Trump’s Return and Dollar Strength Amid Euro Weakness
Trump now dominates the global political and economic stage on a daily basis. With his official inauguration imminent, we are about to grapple with real policy decisions. The American economy continues on its growth path, while Europe struggles. Inflationary pressures loom on the horizon, with tariffs potentially increasing price pressures. The dollar is benefiting from…
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EUR/USD Weekly Outlook, January 6, 2025 – Gas Crisis and Interest Rates Impacting the Euro
The gas war reignites tensions over energy prices in Europe and also puts pressure on the euro, whose performance is hindered by political concerns in key countries like France and Germany, as well as macroeconomic data that continues to offer little reassurance regarding recovery. Meanwhile, expectations grow for Trump’s inauguration at the White House.
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2025 EurUsd Outlook – What Does the New Year Hold for the Euro and Dollar?
A 2025 filled with both certainties and uncertainties is about to unfold. The United States, Europe, China, wars, inflation, and interest rates will continue to drive content and volatility in markets that, in 2024, delivered robust performance in equities, stagnation in bonds, and a strong dollar, fueled by significant economic and interest rate differentials between…
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Weekly EUR/USD Outlook for December 16, 2024 – Inflation and ECB Rate Cuts Shape Market Sentiment
The two most important central banks in the world will close out 2024 with similarly intense rate cuts. The ECB has already announced its 25 basis point reduction, and the Fed will follow suit next week. However, the path for the new year appears divergent, which explains the strength of the dollar, which remains firmly…
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EUR/USD Weekly Outlook for December 9, 2024 – European Crisis Deepens as U.S. Economy Strengthens
The European political and economic crisis is worsening. Following Germany, France may also face new elections after the collapse of the Barnier government, or Macron will need to try to form a new government. This crisis contrasts with a U.S. economy that is thriving, which of course strengthens the U.S. dollar. However, technically, we still…
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EUR/USD Weekly Outlook – December 2, 2024: Tariffs, Inflation, and Central Bank Decisions Shape the Path Ahead
The new American president, Trump, wasted no time in warning neighboring countries and China about upcoming tariffs on imports, at least until drug trafficking and illegal immigration into the US are halted. Meanwhile, in Europe, inflation is showing signs of awakening, reigniting concerns over the extent of the next ECB rate cut.
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Weekly Eur/USD Outlook, November 25, 2024 – Dollar Strengthens as Geopolitical Tensions Weigh on Euro
Authorizing Ukraine to use Western weapons within Russian territory has fueled new geopolitical and military tensions. Following Trump’s victory, market preferences for gold and the dollar have intensified. The EUR/USD exchange rate has dropped below 1.05 in a context where central bank decisions continue to drive currency market dynamics.
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Weekly EurUsd Outlook for November 18, 2024 – Rising Volatility and the Looming Risk of Parity
Trump’s Election Boosts Dollar Amid Eurozone Weakness There is no doubt that Trump’s election has triggered substantial buying volumes for the U.S. dollar while driving sales of the euro and Japanese yen. Markets anticipate increased domestic investment (reflected in gains for small-cap stocks) at the expense of foreign investments, weighing heavily on European markets already…
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Weekly EUR/USD Outlook – November 11, 2024 – Trump Victory Fuels Dollar Surge
Trump returns to the White House, confirming what markets had anticipated for a week: rising bond yields, stock markets at record highs, and a strong dollar. Meanwhile, the Fed cut rates as expected, though this might be its last move as inflation expectations grow among consumers and businesses. Germany, meanwhile, faces turmoil following the dismissal…