Analyst: The US dollar makes a strong comeback, geopolitical risks reshape the forex landscape

BlockBeats News, January 5, due to the United States ousting Venezuelan President Maduro, the British pound fell against the US dollar but rose to a two-and-a-half-month high against the euro. Monex Europe analysts pointed out in a report that safe-haven demand triggered by geopolitical tensions in Venezuela and Iran has boosted the US dollar's performance.

They stated that the euro is more sensitive to trade disruptions, which has led to the pound performing well against the euro, although this trend may only be temporary. They believe: "Heading into 2026, we see that the domestic political environment in the UK remains unfavorable for economic growth and the pound." In contrast, the euro may benefit from the eurozone's fiscal policies stimulating growth. (Golden Ten Data)