The Federal Reserve may return to a more restrictive monetary policy, with a downward revision in its rate cut expectations for 2025 and subsequent years. Investors now anticipate only a 50 basis points rate cut next year.

On the other hand, the euro is expected to weaken further as the European Central Bank (ECB) is projected to continue cutting rates. The Eurozone economy continues to show significant signs of slowing down. Additionally, ECB President Christine Lagarde stated on Monday that inflation is now moving toward the central bank's target range.

Source: Fxstreet