EUR/USD experiences bearish pressure due to US Dollar strength.

The US Dollar Index (DXY) trades around 108.00 with limited movement as markets slow down due to the Christmas holiday. Despite China's potential issuance of nearly 3 trillion Yuan in special treasury bonds by 2025 to revitalize its economy, the Greenback showed little reaction. This week, the market will likely remain range-bound without significant movements with a light US economic calendar.

Similarly, EUR/USD remained range-bound as the US Dollar Index traded within a tight range. Thin holiday trading volumes kept EUR/USD movements minimal as Forex markets prepared for Christmas and Boxing Day. The broader USD outlook remains strong due to the Federal Reserve's more measured approach to rate cuts. The Fed anticipates only two 25-basis-point cuts in 2025, a reduction from earlier projections. This adjustment reflects persistent inflation and a resilient labor market. Investors are closely monitoring upcoming US Unemployment Claims data on Thursday, which is expected to show a slight decline.