EUR/USD Takes Another Hit as US Dollar's Recovery Gains Momentum
The EUR/USD pair continued its decline on Thursday, extending its losing streak to three sessions as the US dollar strengthened further. The greenback's recovery from recent lows was driven by robust economic data and a less dovish Federal Reserve.
The US dollar index rose to a two-week high, supported by stronger-than-expected retail sales and jobless claims figures. Hawkish comments from Fed officials also contributed to the dollar's rise, reducing expectations of aggressive rate cuts in the near term.
The eurozone, on the other hand, showed signs of economic softness, with PMI readings coming in below expectations. The European Central Bank has signaled a cautious approach to policy easing, which has weighed on the euro and put downward pressure on EUR/USD.