The EUR/USD currency pair has risen as the US Dollar has declined in today's trading session. The US Dollar Index has fallen to near 106.90, while the EUR/USD pair has risen to near 1.0450.
The Dollar Index has been coming off sharply and a break below 101 can drag it towards 100.5-99.5 in the medium term. Euro has surged past 1.11 and can test 1.1150/75-1.12 before possibly topping out.
The US Dollar propelled higher buoyed by another week of the central bank policy divergence narrative. Another strong week for the Greenback left risk-sensitive assets on the defensive, with the central bank's policy divergence narrative remaining the key
Policy divergence and geopolitics continue to drive sentiment in the forex market. The US dollar index (DXY) held steady in low 106.00s, while EUR/USD retreated and GBP/USD revisited the sub-1.2300 area. USD/JPY advanced to a new 34-year high around 154.8
The EUR/USD currency pair has fallen to a five-month low near 1.0600 amid expectations that the Federal Reserve will pivot to rate cuts later than the European Central Bank, extending their policy divergence.