The EUR/USD pair remains under pressure as a combination of weak economic data from the Eurozone, particularly Germany, and political uncertainty in France continues to weigh on the euro. Germany, the Eurozone’s largest economy, has faced a slowdown in manufacturing and industrial output, which has exacerbated concerns about the region’s overall economic health. This has resulted in a bearish outlook for the euro as investors anticipate further economic challenges .
Political instability in France, where protests and labor strikes have disrupted key sectors of the economy, has added to the uncertainty surrounding the euro. Market participants are also keeping a close eye on the European Central Bank (ECB), which has maintained a cautious stance on interest rates due to the region’s sluggish growth and persistent inflation .
The EUR/USD pair has struggled to gain upward momentum as these economic and political factors, combined with a stronger U.S. dollar driven by the Federal Reserve’s hawkish tone, continue to weigh on the euro. Traders are looking ahead to upcoming ECB meetings and economic data releases, particularly inflation and employment figures, to assess the potential for any shifts in monetary policy .
