Dollar Leads, But Euro's Structural Story Gains Momentum
| Action Insight Weekly Report 6-21-25 |
Dollar Leads, But Euro's Structural Story Gains Momentum |
Markets were adrift last week as traders grappled with intensifying global risks. The unresolved twin threats of a full-blown trade war and escalating Middle East conflict kept investors on the defensive. Despite some tentative diplomatic efforts, neither front showed meaningful progress, leaving equities vulnerable after months of sustained gains. With investor confidence fraying, global indexes may soon face deeper corrections. Amid the cautious mood, Dollar took the lead, buoyed by Fed’s policy hold and slower projected easing. Yet beneath the surface, Euro is gaining traction on improving confidence in the Eurozone economy, and divergence of ECB policy and other central banks. In the week’s performance table, Euro and Aussie followed the greenback near the top. At the other end, Yen underperformed the most as doubts on BoJ rate hike grew. Sterling struggled on soft UK data, while Loonie also underwhelmed. Swiss Franc and Kiwi held to the middle of the pack. |
EUR/USD Weekly Outlook EUR/USD stayed in consolidations below 1.6300 last week and outlook is unchanged. Initial bias remains neutral this week first. Further rise is expected as long as 1.1372 support holds. Firm break of 1.1630 will resume the rise from 1.1076 and target 61.8% projection of 1.0176 to 1.1572 from 1.1064 at 1.1927 next. | |
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