The Euro weakens against the Dollar despite reduced expectations for further Federal Reserve tightening this year.
The EUR/USD pair fell to 1.1675 in early Asian trading on Thursday, extending losses after a sharp rally earlier in the week. The decline comes as markets scale back bets on additional Federal Reserve interest rate hikes, reducing support for the Dollar.
The Euro had surged in recent sessions amid shifting expectations for U.S. monetary policy, but profit-taking and technical factors weighed on the currency. Analysts noted that while Fed hike odds have faded, the European Central Bank’s policy outlook remains a key driver for the pair.
Traders are now focused on upcoming economic data from both regions, which could influence central bank policy trajectories and currency movements.