The EUR/USD currency pair surged more than 1% in Asian trading on Monday, driven by continued selling pressure on the US Dollar (USD). This push helped the pair breach the 1.1500 level, marking its first time above that threshold since November 2021.
The US Dollar remains under pressure due to growing fears of a potential US economic recession and concerns over the Federal Reserve’s independence. These factors, combined with a lack of progress in trade negotiations between the US and the European Union (EU), have weighed on the USD, providing support to the Euro and allowing EUR/USD to climb.
Additionally, ongoing tensions in the US-Sino trade conflict continue to affect the US Dollar. The latest developments, including China’s move against Boeing planes and the US investigation into mineral imports from China, have kept the USD on the back foot, further benefiting the EUR/USD pair.
Looking ahead, the pair may experience increased volatility due to lighter trading volumes on Easter Monday. With overbought conditions on the daily chart, traders may remain cautious ahead of the upcoming Eurozone preliminary business PMI data, set for release next week.
Related Topics:
