The euro has dropped to its lowest level in two weeks against the US dollar, closing at 1.1381 after touching 1.1377 during Tuesday’s trading session, according to United Overseas Bank currency strategists Quek Ser Leang and Lee Sue Ann. The slide reflects renewed dollar strength as markets positioned ahead of the critical US Consumer Price Index release, with traders seeking safe haven in the greenback amid inflation data uncertainty.
The EUR/USD pair is showing clear downside momentum, though analysts note that key technical support levels are currently holding. The move affects currency traders, corporate treasurers managing euro exposure, and forex brokers who may see increased volatility around the CPI announcement. The dollar’s strength has been broad-based as markets reassess Federal Reserve policy expectations tied to inflation trends.
FXnCO Insight
Traders should watch the 1.1377 support level closely, as a confirmed break below could accelerate euro weakness and trigger stop-loss orders, while a hold may present short-term buying opportunities before the CPI data release.
Source: FXStreet