Euro Struggles Against Dollar Amid Persistent Structural Disadvantages

The euro continues to struggle against the US dollar due to its structural disadvantages, despite the European Central Bank's (ECB) recent hawkish signals.

According to OCBC Bank analysts, the ECB's commitment to further monetary tightening to combat inflation has not been enough to shift the underlying market dynamics.

The euro is facing headwinds from a resilient US economy and persistent interest rate differentials that favor the dollar, making it difficult for the currency pair to gain traction.