As of May 14, 2026, the EURUSD pair continues to point lower, with only fleeting attempts at stabilization. So, what is the bigger picture? The dollar is getting stronger, propped up by two forces coming into play: stubbornly high inflation and lingering geopolitical unease.
Here's what's moving the needle today:
Red-hot US inflation. April's scorching Consumer Price Index (CPI) numbers have all but sealed the deal on a hawkish Federal Reserve (Fed), giving the greenback an extra boost and keeping the euro pinned down.
Geopolitical fog. The murky standoff between Washington and Tehran is driving a steady stream of investors into safe-haven assets, and the dollar remains their go-to destination.
Weak eurozone data. Fresh reports out of Germany show industrial production sliding in key sectors, such as autos, chemicals, and machinery. This is a warning light that the EU's largest economy is stalling. In addition, high energy costs are denting German competitiveness in the global market, chipping away at the euro's appeal. Traders are starting to worry that the country's deindustrialization could be a lasting trend in the making, not just a passing phase.
Monetary policy split. While the American economy keeps flashing resilience—giving the Fed enough room to keep interest rates elevated—Germany's struggles are forcing the European Central Bank (ECB) to walk on eggshells. Consequently, markets are pricing in the risk that the eurozone regulator may have to ease policy sooner and more aggressively than its US counterpart, just to keep the bloc from slipping into a recession. Add supply chain snags and waning demand from China to that, and Germany's export‑driven engine is under serious strain. Until there are real signs that fundamentals have finally bottomed out and are turning the corner, any uptick in the pair will likely be seen by investors as a temporary rebound—and a new chance to go short.
The ultimate recommendation is to sell EURUSD from 1.1745. Lock in profits at 1.1655. Place Stop Loss at 1.1800.
Calculate your open position so that a potential loss (protected by a Stop Loss order) is limited to 1% of your deposit. If your account balance does not allow entering a position of this size, it is better to skip the trade and wait for other market signals that meet low-risk criteria.
This content is for informational purposes only and is not intended to be investing advice.