EUR/USD Drops from Highs as Fed Powell and US Data Take Center Stage

EUR/USD Drops from Highs as Fed Powell and US Data Take Center Stage

The EUR/USD currency pair has seen a strong rally for the tenth consecutive day, trading with marginal gains near the 1.1800 level on Tuesday as investors await Federal Reserve Chair Jerome Powell’s speech at the Sintra central bankers’ forum in Portugal and upcoming US manufacturing and job openings data.

The Euro has been supported by better-than-expected Eurozone data, including a revised HCOB Manufacturing PMI and improved German unemployment figures, alongside steady inflation rates indicated by the June Consumer Prices Index (CPI).

Meanwhile, the US Dollar remains under pressure due to ongoing trade uncertainties, growing concerns over the US fiscal debt, and mounting speculation that the Federal Reserve may implement at least two rate cuts later this year.

Investor optimism around the recent China-US rare earths deal has been tempered by President Trump’s complaints about stalled negotiations with Japan and Treasury Secretary Scott Bessent’s threat to impose higher tariffs.

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