The largest driver of currency movements in major currencies like the USD and EUR is interest rates. The US is currently has 2% (I think?) higher rates than EUR

The largest driver of currency movements in major currencies like the USD and EUR is interest rates. The US is currently has 2% (I think?) higher rates than EUR and the FED is more likely to raise rates more aggressively than the ECB. That alone is enough to set off a declining trend in the euro vs the dollar.