The EUR/USD pair has reached 1.05, marking its lowest level in over a year as market forces drive renewed strength in the U.S. dollar. This shift comes amid economic uncertainty in the eurozone and expectations of further U.S. monetary policy adjustments, placing pressure on the euro.
A stronger dollar, fueled by steady U.S. economic data and the Federal Reserve’s cautious stance on future rate cuts, has limited the euro’s appeal. For now, market participants are closely watching for any signals from the European Central Bank, as future ECB policy moves could impact EUR/USD dynamics and bring more volatility to the currency pair.
