The EUR/USD currency pair extended its decline, falling below the 1.0550 level as markets braced for critical economic cues. Traders anticipate European Central Bank President Christine Lagarde’s speech, expected to provide insights into the ECB’s monetary policy stance amid economic challenges. Meanwhile, upcoming US PMI data could offer a fresh perspective on economic activity stateside, influencing market sentiment further.
The euro’s decline underscores cautious investor behavior, driven by concerns over the ECB’s potential rate adjustments amid signs of slowing growth. At the same time, strong US economic data could reinforce the Federal Reserve’s hawkish tone, adding pressure to the euro-dollar dynamic. The speech and PMI figures are key determinants for potential volatility in the forex market.
