Expectations of fewer US interest rate cuts in 2025

Expectations of fewer US interest rate cuts in 2025 continue to dominate the market. 35 basis points of easing is expected for 2025, which in turn has led to a sharp rise in US Treasury yields and the dollar to new highs. The dollar index is holding near a two-year high. On Christmas Eve, EUR/USD remains sandwiched between local resistance in the 1.0500 area and support below the 1.0330 level.