The EUR/USD pair continues to face downside pressure following another wave of strong U.S. macroeconomic data and rising Treasury yields. The latest U.S. inflation and producer price figures came in above market expectations, sharply reducing the likelihood of Federal Reserve rate cuts in the coming months.
Investors are increasingly pricing in a “higher for longer” scenario, with some market participants even considering the possibility of additional tightening by the Fed toward the end of 2026.
Geopolitical risks and oil prices support the U.S. dollar
Additional support for the dollar is coming from escalating geopolitical tensions surrounding the U.S.–Iran conflict. Amid concerns over potential disruptions to oil supplies, Brent crude remains above $110 per barrel, fueling inflation risks while simultaneously boosting demand for the dollar as a safe-haven asset. Under these conditions, the euro remains vulnerable, as higher energy prices continue to weaken the Eurozone’s economic outlook and put pressure on Europe’s industrial sector.
ECB caught between inflation and weak growth
The European Central Bank continues to face a difficult balancing act: inflation in the Eurozone remains above target, while economic growth is close to stagnation. Markets are still pricing in the possibility of another ECB rate hike this summer, although investors increasingly doubt whether the European economy can withstand an extended period of tight monetary policy. Against this backdrop, the widening yield differential between the United States and the Eurozone continues to favor the U.S. dollar.
Market outlook and key levels to watch
Amid persistent selling pressure, EUR/USD recovery remains capped by resistance around the 1.1660 level. After testing this area, the pair retreated toward 1.1633 at the time of writing. As a result, the risks of another test of the key support zone around 1.1610–1.1600 remain elevated. A confirmed break below this area could accelerate declines toward 1.1580–1.1550. On the upside, a move above resistance may trigger a recovery toward 1.1680–1.1700, where renewed selling interest in the euro could emerge once again.
As highlighted in the article EUR/USD under pressure amid hawkish Fed expectations, the near-term outlook for the pair remains bearish.
Latest EUR/USD News
-
Afghanistan
-
Albania
-
Algeria
-
Angola
-
Argentina
-
Armenia
-
Australia
-
Austria
-
Azerbaijan
-
Bahamas
-
Bahrain
-
Bangladesh
-
Belarus
-
Belgium
-
Bolivia
-
Botswana
-
Brazil
-
Brunei
-
Bulgaria
-
Cambodia
-
Cameroon
-
Canada
-
Chile
-
China
-
Colombia
-
Congo
-
Costa Rica
-
Cote d'Ivoire
-
Croatia
-
Cuba
-
Cyprus
-
Czechia
-
DR Congo
-
Denmark
-
Dominican Republic
-
Ecuador
-
Egypt
-
El Salvador
-
Estonia
-
Eswatini
-
Ethiopia
-
Finland
-
France
-
Georgia
-
Germany
-
Ghana
-
Greece
-
Haiti
-
Hong Kong
-
Hungary
-
India
-
Indonesia
-
Iran, Islamic republic
-
Iraq
-
Ireland
-
Israel
-
Italy
-
Jamaica
-
Japan
-
Jordan
-
Kazakhstan
-
Kenya
-
Korea
-
Kuwait
-
Kyrgyzstan
-
Laos
-
Latvia
-
Lebanon
-
Lesotho
-
Libya
-
Lithuania
-
Luxembourg
-
Madagascar
-
Malaysia
-
Malta
-
Mauritius
-
Mexico
-
Moldova
-
Mongolia
-
Montenegro
-
Morocco
-
Mozambique
-
Myanmar
-
Namibia
-
Nepal
-
Netherlands
-
New Zealand
-
Nigeria
-
North Macedonia
-
Norway
-
Oman
-
Pakistan
-
Palestine
-
Panama
-
Papua New Guinea
-
Paraguay
-
Peru
-
Philippines
-
Poland
-
Portugal
-
Puerto Rico
-
Qatar
-
Reunion
-
Romania
-
Rwanda
-
Saudi Arabia
-
Serbia
-
Singapore
-
Slovakia
-
Slovenia
-
Somalia
-
South Africa
-
Spain
-
Sri Lanka
-
Sweden
-
Switzerland
-
Syria
-
Taiwan
-
Tajikistan
-
Tanzania
-
Thailand
-
Trinidad and Tobago
-
Tunisia
-
Turkey
-
UAE
-
Uganda
-
Ukraine
-
United Kingdom
-
United States
-
Uruguay
-
Uzbekistan
-
Venezuela
-
Vietnam
-
Yemen
-
Zambia
-
Zimbabwe
- Forex
- Crypto
