The EUR/USD pair slipped further on Thursday, testing new multi-month lows as the U.S. dollar continued its upward momentum. The euro faced pressure from weak economic data in the eurozone, while robust U.S. economic performance bolstered the greenback. This downward move highlights investor skepticism about the eurozone’s ability to match U.S. growth prospects in the near term.
Analysts point to diverging monetary policies as a key driver. While the Federal Reserve remains hawkish, suggesting rates could stay elevated, the European Central Bank appears cautious, weighing slowing growth against inflation concerns. With the dollar retaining its safe-haven appeal, EUR/USD may remain under pressure unless eurozone fundamentals improve.
