The US Dollar staged a late-week rebound from three-year lows, buoyed by rising US Treasury yields and cautious remarks from Federal Reserve officials. While San Francisco Fed President Mary Daly and Minneapolis Fed President Neel Kashkari struck measured tones on policy outlook, Fed Governor Adriana Miran reiterated her preference for deeper easing, keeping market participants on edge. Meanwhile, across the Atlantic, political headwinds are weighing on the Euro as French protests against proposed spending cuts challenge President Emmanuel Macron’s newly appointed prime minister. Together, these dynamics have placed renewed pressure on EUR/USD, shifting near-term sentiment in favor of the Dollar.
EUR/USD Under Pressure as Dollar Rebounds and French Protests Stir Political Risk
EUR/USD slipped to 1.1747, down 0.32%, as a stronger US Dollar and political unrest in France weighed on sentiment. The pair’s move comes in a week with limited economic data releases, leaving markets focused on central bank commentary and political developments.
From the US, remarks by San Francisco Fed President Mary Daly and Minneapolis Fed President Neel Kashkari highlighted a cautious stance, with Kashkari even signaling willingness to consider rate hikes if conditions require. In contrast, Fed Governor Stephen Miran maintained his call for deeper cuts, underscoring divisions within the Federal Reserve. Rising Treasury yields further underpinned the Dollar’s rebound.
Across the Atlantic, the Euro faced added strain as nationwide protests in France challenged President Emmanuel Macron’s administration. Demonstrators pushed back against proposed spending cuts, intensifying pressure on newly appointed Prime Minister Sebastien Lecomu and amplifying political risks for the common currency.
Looking ahead, traders will turn to key US data releases next week—including S&P Global Flash PMIs, Durable Goods, GDP, and the Fed’s preferred inflation measure, Core PCE—alongside another round of Fed speakers that could set the tone for the Dollar’s next move.
Technical Outlook: EUR/USD Holds Bullish Tone Despite Dip Under 1.1750
The EUR/USD pair has maintained its broader bullish bias despite three consecutive days of downward pressure from the 1.19158 peak. Over the longer horizon, the market has trended steadily higher, clearing the key 1.1800 resistance before topping out near 1.19158.
Currently, traders are showing renewed interest at the next significant support level around 1.17562. This zone has proven pivotal in halting bearish momentum, suggesting that a rebound could be forming with a potential retest of the 1.1800 handle.
Technical indicators reinforce this outlook. The Relative Strength Index (RSI) remains in bullish territory, signaling that market momentum still favors buyers. A decisive rebound above 1.1800 could open the path for further upside, with 1.1900 emerging as the next target for the bulls.
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