**Title: EUR/USD Faces Renewed Pressure Amidst Dollar Strength and Economic Data Triggers**
*Based on original reporting by Savis Thurman for Mitrade, with added analysis and information drawn from recent Forex market commentary.*
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**Introduction**
The EUR/USD currency pair, representing the exchange rate of the Euro against the US Dollar, remains at the forefront of Forex market attention due to its deep liquidity, substantial global trading volumes, and its responsiveness to economic, political, and central bank policy shifts in both the United States and the Eurozone. Recently, the Euro has come under renewed pressure, dropping below the 1.0600 mark against the Dollar. Several factors underpin this move: resilience in US economic data, a hawkish posture from the US Federal Reserve, and persistent economic weakness in the Eurozone.
This article examines the short-term and intermediate prospects for EUR/USD, focuses on the economic and policy landscape influencing the pair, and reviews key technical levels that traders are watching. Insights are drawn primarily from Savis Thurman’s report for Mitrade, with additional context and data provided from other reputable financial sources.
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**I. The Current Landscape for EUR/USD**
**1. The Euro’s Recent Weakness**
– EUR/USD began its descent amid a spate of robust US economic releases late last week.
– The decline continued as markets digested hawkish minutes from the most recent Federal Open Market Committee (FOMC) meeting, which suggested that some policymakers favored a further tightening bias to ensure inflation moves sustainably closer to the 2 percent target.
– The Euro suffered additional blows from weak regional economic indicators. The preliminary readings of Eurozone Purchasing Managers’ Indexes (PMIs) for both manufacturing and services fell short of expectations, underscoring ongoing stagnation.
**2. Dollar’s Strength and Safe-Haven Appeal**
– The US Dollar Index (DXY) rallied, buoyed by stronger-than-expected US macro data.
– Investors flocked to the greenback due to heightened geopolitical risks, with headlines around global conflicts and trade tensions adding a safe-haven bid.
– US GDP for Q3 beat estimates, and labor market data continued to show resilience, reinforcing expectations that the Fed could maintain elevated rates for an extended period.
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**II. Key Recent Economic Releases and Their Impact**
**1. United States: Firm Economic Foundation**
– Recent data has shown:
– Q3 GDP expanding above consensus, confirming robust economic momentum.
– PMI surveys particularly in services exceeding the 50 benchmark, indicating continued expansion.
– Jobless claims and other labor metrics suggesting a tight employment market.
– The Federal Reserve minutes, released last week, indicated that the Fed plans to keep rates “sufficiently restrictive,” with certain members open to renewed rate hikes if inflation does not subside as desired.
– Elevated yields on US Treasury notes have made the Dollar more attractive compared to its peers.
**2. Eurozone: Growth Stagnation and Recession Risks
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