The EUR/USD pair faced resistance at the 1.0500 level, halting its recovery after touching two-year lows earlier this week. The pair rebounded following signs of stability in the eurozone, but persistent concerns over economic divergence between the U.S. and Europe continue to weigh on market sentiment.
The euro’s brief rally came as the dollar eased from its recent highs, driven by softer U.S. Treasury yields. However, analysts caution that the EUR/USD recovery may remain capped unless eurozone data shows signs of resilience or the Federal Reserve signals a shift in its monetary policy stance. For now, the pair trades within a narrow range, reflecting ongoing uncertainty in the broader macroeconomic outlook.
