The dollar is facing downward pressure against the euro due to growing expectations that the European Central Bank (ECB) will raise interest rates. Market analysts predict the ECB is poised to tighten monetary policy in the Eurozone to combat inflation.

This anticipation has led investors to favor the euro, driving its value higher against the U.S. dollar. Currency traders are closely monitoring economic indicators from both the U.S. and Europe for further clues about future monetary policy decisions.