Why the Euro and Pound Are Feeling Low‑Mood on the Weekend
Just when you thought the market was settling into the new year, the euro slid 0.4 % to a fresh two‑year nadir, and sterling dipped another 0.5 %. The EUR/USD pair has now gone over 1.3 % below Monday’s morning high, even though the data stream is pretty much a ghost town.
Heading Into the Trump Era
With the January 20 inauguration on the horizon, everyone’s eyes are square‑ly on whether the first executive order or policy clarifications will feel like a sonic boom for the economy.
- Higher growth and inflation expectations under a Trump presidency—because you know, folks expect speculation to be the new surfacing point of the hill.
- Plus, the strong economic data over the past quarter backs up the idea that we might see fewer than two full rate cuts this year.
Factor in the softer European outlook and you’ve got a dollar that’s giddy with confidence as 2025 rolls in.
Transient Moves? A Flash in the Pan?
Right now, those go‑to‑market changes are unlikely to stick around. The currency market is kind of like that flimsy ice at a storybook winter festival—capable of staying for a moment, then dissolving. Why?
- Liquidity is as dry as a desert.
- We’re all trading in a data vacuum, a place for spooky silence.
Given this, there’s a solid chance the fluctuations we saw over the holiday might flip back during the coming days, and the labour market data could start to dictate the rhythm next week.
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