The EUR/USD pair extended its upward momentum over the past week, reaching fresh multi-month highs amid political developments in the U.S. and global market sentiment. Bullish pressure on the U.S. dollar intensified following unexpected statements from former President Donald Trump, who indicated potential changes to trade and fiscal policies if reelected. These announcements spurred increased market volatility and heightened uncertainty, prompting investors to seek alternatives to the dollar. As a result, the euro capitalized on the dollar’s weakness, gaining ground amid relatively hawkish signals from the European Central Bank (ECB).
Technical indicators suggest that the EUR/USD pair remains in bullish territory, consistently printing higher highs and staying well above key moving averages. While market participants await further clarity from both the Federal Reserve and ECB, the current trajectory favors continued appreciation for the euro in the near term. However, analysts warn that upcoming U.S. economic data releases and political developments could spark renewed volatility, making the pair sensitive to headline-driven swings in sentiment.
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