EUR/USD Breaks Below 1.13 as US Data Strengthens Dollar

EUR/USD Falls Through 1.13 as Strong US Data Pummels Euro; German GDP Under the Microscope

The EUR/USD currency pair came under heavy pressure on Thursday, falling below the key 1.1300 level, as stronger-than-expected US data boosted the dollar and weak Eurozone figures weighed on the euro. The pair is currently trading around 1.1271, marking a 0.55% decline for the day.

Weak Eurozone PMIs Add to Downward Pressure

The euro was hit hard after the latest Flash Purchasing Managers Index (PMI) data from the Eurozone came in weaker than forecasted. The services and manufacturing sectors both showed signs of slowing, raising fresh concerns about the strength of the Eurozone recovery. While the European Central Bank (ECB) has maintained a tone of cautious optimism, the soft data puts pressure on policymakers ahead of key inflation and GDP figures, particularly from Germany.

US PMIs Beat Expectations

In contrast, the United States delivered a strong set of economic data. The S&P Global Flash PMI for May exceeded expectations, signaling continued resilience in both the services and manufacturing sectors. This reinforced the view that the US economy remains robust despite global headwinds, and supported the US dollar across the board.

Political Tailwinds for the Dollar

Adding to the Greenback’s momentum was news that President Donald Trump’s sweeping fiscal package—dubbed the "One Big Beautiful Bill"—cleared the House of Representatives. The legislation, which includes major budget cuts and tax reforms, is seen as a strong fiscal push that could further stimulate the US economy. Markets are now awaiting the Senate’s response to the bill.

Key Technical Levels

• Support: 1.1270, 1.1235, 1.1200
• Resistance: 1.1300, 1.1345, 1.1370

Technically, EUR/USD now sits below a critical support zone at 1.1300. If the downward momentum continues, bears could target the 1.1235 region next. On the upside, bulls will need to reclaim 1.1300 to shift short-term sentiment.

Looking Ahead

All eyes will now turn to Friday’s German GDP report and upcoming inflation data from both regions. Any sign of further divergence between US and Eurozone economic performance could widen the gap between the currencies even further.