EURUSD has rebounded strongly, driven by shifting market sentiment amid weakening US growth expectations due to Trump’s trade policies. Capital is rotating out of USD assets as confidence wanes, while reserve managers are reallocating into EUR. A stronger EMU outlook—bolstered by German elections and strategic shifts in EU fiscal and defense policies—supports EUR gains. Speculative investors are increasingly long EUR and short USD, though positioning is not yet stretched. Despite a potential short-term correction signaled by technicals, the broader trend remains bullish.