EUR/USD Currency Pair: Why Divergent Central Bank Policies Could Drive Gains

The EUR/USD currency pair stands at a critical juncture, heavily influenced by the expected divergence in monetary policy between the European Central Bank (ECB) and the Federal Reserve. The ECB is likely to initiate interest rate cuts sooner due to moderating inflation and concerns about sluggish Eurozone growth, while the Fed maintains a more patient approach to achieving its 2% inflation target. This divergence could drive gains for the EUR/USD pair in a way that surprises many.