EUR/USD Returns to 1.1300 as Optimistic US Data Supports Dollar

EUR/USD Returns to 1.1300, Dollar Boosted by Optimistic US Data

EUR/USD declined to around 1.1306 during early European trading on Wednesday, marking a second consecutive day of losses. The US Dollar gained strength supported by upbeat US economic data and easing trade tensions after President Trump delayed tariffs on European imports.

Improved US Consumer Confidence data showed a decline in recession fears among Americans, offsetting weaker Durable Goods Orders for April. This helped the Dollar regain ground after a period of weakness. Meanwhile, the Euro faced continued pressure as Eurozone confidence ratings remained weak.

Additionally, a member of the European Central Bank, François Villeroy, suggested there is room for further interest rate cuts in the Eurozone, adding to bearish sentiment for the Euro. The US Dollar Index rose about 1% from one-month lows, reflecting relief over reduced trade war concerns. Overall, risk appetite increased, favoring the Dollar over the Euro in the currency pair.