Not much was really happening on Christmas Eve besides the greenback showing calm and collected dominance across the board.

• The EURUSD pair was mostly treading water on Christmas Eve as traders were slowly drifting into the easy trading of a Holiday-jammed week. It’s Christmas today and it appears that the US dollar is the one handing out the gifts in the forex market. The greenback has taken advantage of the light volumes and thin liquidity to pressure the euro, bringing it under $1.04 and on track to close the second day of gains against it.
• It hasn’t been easy to be a euro bull this year but it’s been especially challenging (and loss-making) to be a euro bull in the final quarter. For the past three months, the euro has erased more than 7% of its valuation against the buck. To make it worse, it started crumbling right as it hit a 2024 high of $1.12. Blame it on the European Central Bank, which resorted to aggressive interest rate cuts in efforts to revive a stagnating eurozone economy.
• The euro is heading into the new year with prospects of even more interest rate cuts, which is denting its growth outlook as low rates generally hurt the local currency’s valuation. Europe’s central bank said at its last meeting that it doesn’t consider inflation a threat and will be looking to do at least a couple more trims to borrowing costs at its upcoming meetings. And with that, the dollar is the forex king once again.