The euro declined against the U.S. dollar on Monday, slipping toward the 1.1350 level as a fresh wave of demand for the greenback pressured major currencies. The move reflects renewed confidence in the dollar amid solid U.S. data and rising Treasury yields, reversing some of the euro’s recent momentum.
EUR/USD fell to around 1.1352, marking its lowest level in over a week, as traders shifted back into the dollar following strong U.S. economic indicators. Better-than-expected manufacturing data and resilient consumer spending figures have strengthened the case for the Federal Reserve to keep rates elevated, reinforcing the dollar’s appeal in global markets.
The euro, by contrast, has struggled to maintain upside traction amid ongoing concerns over eurozone growth and cautious commentary from European Central Bank officials. While inflation across the bloc has been moderating, policymakers appear increasingly hesitant to signal any tightening, limiting support for the currency.
Adding to the pressure, geopolitical jitters and a rise in global risk aversion have further boosted the dollar’s safe-haven status. Investors are now awaiting key U.S. inflation data due later this week, which could further influence Fed expectations and currency flows.
Technical signals show EUR/USD testing support near 1.1340, with downside risks increasing if the pair fails to hold this level. A break below could open the door to deeper losses, particularly if incoming U.S. data continues to surprise to the upside.
For now, the dollar remains in control, with the euro facing a challenging backdrop of sluggish growth and limited policy catalysts. Traders will be watching closely for remarks from central bankers this week, which could offer further clues on the path forward for both currencies.
