EUR/USD Weekly Outlook: Dollar Strength Pressures Euro on Rate Cut Odds

EUR/USD remains under bearish pressure, trading near 1.0750 as the US dollar maintains strength on resilient economic data and diminishing expectations for a January Fed rate cut. Recent US employment figures and service sector indicators have exceeded forecasts, pushing Treasury yields higher and supporting dollar demand. Markets are now pricing in only a 15% probability of a rate cut at the January FOMC meeting, down from 40% a month ago. The pair faces immediate resistance at 1.0800, with stronger barriers at 1.0850. Support levels are seen at 1.0720 and the psychological 1.0700 mark. This week's US CPI data release will be crucial, with any upside surprise likely to further strengthen the dollar and potentially push EUR/USD toward the 1.0650 region. Traders should monitor European economic releases for any signs of deterioration that could accelerate euro weakness.