The euro's outlook is strengthened by the progress of economic data

Recent behavior of the main economic indicators in both the United States and the Eurozone has led to a notable shift in market outlooks regarding the euro. According to analyses by Jin10 and industry experts, this transformation reflects a new balance of forces that previously drove the performance of the US dollar.

Kit Juckes, a currency strategist at Société Générale, has noted that although concerns remain about the direction of US fiscal policy and the extent of foreign investments in US assets, these factors continue to be central points of debate in the currency markets. The specialist emphasizes that these concerns remain relevant as elements of uncertainty that investors constantly monitor.

Regarding the profit margins between the two economies, a gradual reconfiguration is observed that slightly favors assets denominated in euros. However, Juckes warns that these changes in interest rate differentials are still far from the levels that characterized the euro-dollar pair’s behavior years ago, when the exchange rate surpassed the 1.20 barrier in 2020. This context suggests that, although there is a shift in market outlooks, there is still significant room before movements as dramatic as those seen in that prior period are replicated.

Analysts are maintaining constant vigilance on how these differentials will evolve in the coming months, as they will be decisive in defining the new trajectory of the euro.