Eurozone data fuels speculation of an ECB rate pause, erasing earlier gains and pushing EUR/USD to session lows.
The Euro retreated to 1.1430 against the US Dollar on Friday, surrendering earlier gains that peaked at 1.1475. The reversal followed Eurozone economic data, which bolstered expectations of a pause in European Central Bank rate hikes.
Prior to the release, the pair had traded near daily highs, but weak data prints reduced bets on further tightening. Analysts noted the shift in sentiment as markets priced in a more cautious ECB stance.
The move left EUR/USD nearly unchanged for the day, reflecting investor caution ahead of next week’s policy decision.