The US dollar has strengthened rapidly amidst rising US government bond yields. Investors continue to assess the likelihood of the Federal Reserve making only a single rate adjustment this year, as the domestic economy still shows signs of sustained growth.

Meanwhile, the European Central Bank (ECB) maintains a tendency toward cutting interest rates in 2025. Investors anticipate further rate cuts despite rising inflation rates in Germany and the Eurozone as a whole. However, additional monitoring of inflation rates may be necessary to evaluate the long-term economic outlook.

Source: Fxstreet