USD Still Supported by High US Rates
The Federal Reserve is slow to cut rates because inflation is sticky.
Higher rates = stronger USD, especially against
JPY
EUR
GBP
Inflation Direction Will Decide USD Trend
If US inflation stays above target → USD remains strong.
If inflation drops fast → USD weakens in Q2–Q3 2025.
USD Safe-Haven Advantage
During global uncertainty (wars, recession fears, stock market corrections),
investors move money to USD.
That keeps DXY above 100–105 zone.
Possible Weakening Late 2025
Only if:
✔ Fed cuts rates
✔ US economy slows
✔ Risk-on sentiment rises
Then EUR/USD can attack 1.10+ again.
The Federal Reserve is slow to cut rates because inflation is sticky.
Higher rates = stronger USD, especially against
JPY
EUR
GBP
Inflation Direction Will Decide USD Trend
If US inflation stays above target → USD remains strong.
If inflation drops fast → USD weakens in Q2–Q3 2025.
USD Safe-Haven Advantage
During global uncertainty (wars, recession fears, stock market corrections),
investors move money to USD.
That keeps DXY above 100–105 zone.
Possible Weakening Late 2025
Only if:
✔ Fed cuts rates
✔ US economy slows
✔ Risk-on sentiment rises
Then EUR/USD can attack 1.10+ again.