The Euro pares losses against the Dollar after Fed rate hike expectations curb further gains despite a softer greenback.
EUR/USD climbed to 1.1470 on Friday, rebounding from a three-month low of 1.1417 as the US Dollar eased. The move follows a broader pullback in the greenback after recent strength driven by hawkish Federal Reserve policy expectations.
The pair had fallen sharply earlier in the week amid rising US Treasury yields and bets on prolonged Fed tightening. Market consensus points to at least one more rate hike this year, limiting the Euro’s upside despite the Dollar’s temporary retreat.
Traders remain cautious as Fed officials signal a higher-for-longer rate path, keeping pressure on risk assets and major currency pairs.