Jason

The euro is weakened by multiple factors. Although the euro has rallied in the short term, it is only due to market sentiment. And coupled with the fact that a new round of downside has been opened, the euro is expected to have a limited rebound.

The market is in turmoil and strong risk aversion is supporting the dollar's rise.

A strong USD, signs of an escalating regional conflict, and a possible further exacerbation of the energy crisis as well as economic risks all contribute to the EUR's weakness more than ever. 

The current rise of the dollar is both affected by the interest rate hike by the Fed and the interest rate difference between the currencies of various countries and the dollar due to policy gaps. Intervention by the Bank of Japan (BOJ) could not reverse the dollar's upward trend.

Many factors weighed on the euro, such as an aggressive rate hike by the Fed, recession fears, and an energy crisis.

The Fed's resolute resistance to inflation dispels the market's thoughts of a rapid shift to easing by the Fed in the short term. However, aggressive rate hikes have increased market fears of a recession.

The possibility of further escalation of the Russian-Ukrainian war and market concerns about a global economic recession have made the euro weaker than ever.

Influenced by the possible escalation of the war between Russia and Ukraine, the dollar rises in the short term due to risk aversion. The forthcoming Interest Rate Decision may cause the dollar to fall in the short term, but it cannot change the overall upward trend of the dollar. And it is even po

Intensive and aggressive interest rate hikes by many central banks may stimulate risk aversion sentiment in the market, thereby weakening the EUR.

Market expectations of the terminal interest rate of the Federal Reserve (Fed) and risk aversion can support the US dollar (USD) to the upside.