EUR/USD Holds Near 1.1800 After Touching Highest Level Since 2021

EUR/USD Holds Near 1.1800 After Touching Highest Level Since 2021

The EUR/USD pair is trading around 1.1800 during Wednesday’s Asian session, down slightly from its Tuesday peak of 1.1830, the highest level recorded since September 2021. The modest pullback is attributed to minor gains in the US Dollar (USD), supported by better-than-expected US macroeconomic data.

US Dollar Finds Temporary Support

The US Dollar Index (DXY) is attempting to rebound from its recent downtrend, trading around 96.70, marking the end of a losing streak that began on June 19. The Greenback's recent uptick follows the release of stronger-than-expected US economic indicators.

• US ISM Manufacturing PMI rose to 49.0 in June, up from 48.5 in May, surpassing market expectations of 48.8.
• JOLTS Job Openings climbed to 7.76 million in May from 7.395 million in April, beating the forecast of 7.3 million.

These indicators suggest improving economic activity, offering temporary support for the USD.

Euro Outlook Remains Positive

Despite today’s minor pullback, the Euro remains supported by strong momentum, with the currency benefitting from weaker US rate expectations and ongoing EU-US trade dialogue. EU Commissioner Maros Sefcovic is scheduled to meet with US trade officials this week to advance ongoing tariff negotiations, which could impact future currency flows.

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