Since the mid‑August shift in central‑bank policy to curb inflation, the euro has been on a steady decline. The currency is now trading at $1.124, matching its lowest level since May 2025, after slipping 3.2% against the U.S. dollar.
The rally in the dollar stems from tighter monetary stances and a sharp jump in France’s risk premium, which has fueled bearish sentiment toward the euro. Investors betting on a weaker euro are finding fresh momentum, turning the currency’s slide into a fertile ground for short‑position strategies.
Analysts warn that as long as the dollar stays robust and French risk remains elevated, the euro could face further pressure.