The Euro breaks its 1.1400–1.1800 support as softer Eurozone data and Fed hikes pressure the currency pair.
EUR/USD has dropped below its long-standing 1.1400–1.1800 range, driven by widening policy divergence between the ECB and Fed. The shift follows softer Eurozone economic data and easing energy prices, reducing pressure on the ECB to raise rates further.
The Fed remains on track for multiple rate hikes, contrasting with the ECB’s more cautious stance. This yield gap has increased downside risks for the Euro, marking a departure from its previous trading band.
Market focus now turns to further policy signals from both central banks, with the currency pair’s trajectory hinging on relative monetary tightening paths.