The EUR/USD market bias is currently range-bound, with the euro oscillating around $1.175 after a strong performance last year.
Key drivers include the interest rate differential, as the Federal Reserve may implement additional rate cuts by mid-2026, which typically weakens the USD. Meanwhile, positive eurozone GDP growth projections of 1.6% in 2026 support the euro. The European Central Bank's flexible policy approach adds to this stability.
Looking ahead, the near-term range for EUR/USD is expected to remain steady, reflecting a stable trading environment with minimal volatility. An upside risk could emerge if U.S. economic data disappoints and spurs further USD weakness. Conversely, a downside risk exists if the eurozone's economic growth falters or geopolitical tensions escalate, which may lead to increased uncertainty and pressure on the euro.
Price data shows the EUR/USD close to its 14-day lows, which adds context to this analysis. The currency pair has exhibited stable fluctuations lately, with limited movement expected in the near future.
