The EUR/USD pair rebounded slightly in early trading, supported by improved market sentiment and mild weakness in the U.S. dollar. Despite this uptick, analysts caution that the recovery may be short-lived as macroeconomic concerns and divergent monetary policies between the European Central Bank (ECB) and the Federal Reserve weigh on the pair’s trajectory.
Source – FXStreet
The euro found support from easing bond yields in Europe, while the dollar saw reduced demand following weaker-than-expected U.S. economic data. However, the market expects the Federal Reserve to maintain its hawkish stance longer than the ECB, dampening euro strength. With no major catalysts on the horizon, traders remain cautious, eyeing key resistance levels near 1.0920. Failure to breach these levels could confirm the temporary nature of the pair’s recovery.
