The EUR/USD extended its recovery from the 1.05 mark, driven by a softer U.S. dollar and cautious market sentiment. After hitting recent lows, the euro has found support as traders reassess the Federal Reserve’s next moves on interest rates. With risk appetite improving, the pair climbed steadily, signaling renewed confidence in the eurozone’s economic outlook.
Market participants remain focused on upcoming economic data, including U.S. retail sales and eurozone GDP figures, which could shape the pair’s direction. The dollar’s pullback has also played a pivotal role, fueled by a moderation in bond yields. Analysts caution that EUR/USD’s trajectory depends heavily on the Fed’s tone in upcoming speeches, as well as inflation data expected later this week.
