Euro / U.S. DollarShort
EUR/USD Hits Lowest Level in Over 2 Years
Updated
Currently, EUR/USD continues its sharp decline, opening the 2025 trading season by hitting 1.0250—its lowest level since November 2022, marking a 26-month low.
According to assessments, the European Central Bank (ECB) is on track for steady rate cuts through 2025. ECB’s Stournaras suggests that the rate could land somewhere around 2% by the end of this year.
Meanwhile, with the Federal Reserve (Fed) expected to cut interest rates at a much slower pace than previously anticipated in 2025, the Euro’s interest rate differential is likely to widen significantly. This divergence is expected to maintain downward pressure on EUR/USD in the long term.
According to assessments, the European Central Bank (ECB) is on track for steady rate cuts through 2025. ECB’s Stournaras suggests that the rate could land somewhere around 2% by the end of this year.
Meanwhile, with the Federal Reserve (Fed) expected to cut interest rates at a much slower pace than previously anticipated in 2025, the Euro’s interest rate differential is likely to widen significantly. This divergence is expected to maintain downward pressure on EUR/USD in the long term.
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