In 2026, the European Central Bank and the US Federal Reserve are expected to play a less dominant role in driving EUR/USD, as broader economic growth dynamics move to the forefront. While trade frictions between the United States and China are likely to persist, they are not expected to escalate into widespread global disruption. Against this backdrop, EUR/USD remains supported by bullish momentum, although upside conviction appears cautious as investors increasingly focus on diverging growth prospects between the two economies.
