Fed Silence Weighs on US Dollar Amid Eurozone Economic Boom

The Fed's recent silence is weighing heavily on the US dollar, as investors struggle to predict its next move. The dollar's value has been impacted by the eurozone economy outperforming that of the US for the first time since late 2025.

According to Bloomberg, the eurozone GDP grew twice as fast as expected in the second quarter, rising 0.4% QoQ and accelerating annual growth to 1.8%, compared to 1.6% in the US.

The strong economy supports a stronger currency, with the EUR/USD pair climbing to a five-week high due to Treasury yields falling and expectations of further Fed tightening fading.