The EUR/USD pair extended its upward momentum as the U.S. Dollar weakened, driven by shifting market sentiment and economic expectations. The Euro gained strength against the greenback, reflecting a recalibration of investor strategies ahead of key policy announcements from central banks.
Source – FXStreet
Market participants are pricing in a slower rate hike trajectory by the Federal Reserve, with recent data suggesting inflation pressures are easing. This dovish outlook has weighed on the Dollar, providing room for the Euro to climb. Meanwhile, improved economic activity in the Eurozone, highlighted by stronger-than-expected data, has further supported the pair’s gains.
As traders monitor upcoming economic releases, the EUR/USD outlook hinges on continued divergence between the Fed and European Central Bank policies. A sustained break above recent resistance levels could signal further upside potential, though volatility remains likely amid geopolitical and economic uncertainties.
