- July 6, 2026
- Posted by: EWGFX
- Category: news
Dollar Strength Weighs on EUR/USD
The EUR/USD pair is trading slightly in the red around 1.1428 during the early European session on Monday, with modest selling pressure emerging as the US Dollar regains traction following a weak weekly close.
In late Asian trading, the US Dollar Index (DXY) – which tracks the performance of the Greenback against six major counterparts – is up 0.1%, hovering near 101.00. The modest recovery comes after a period of weakness triggered by the latest United States Nonfarm Payrolls (NFP) report for June, which pointed to moderate labor demand and prompted a reassessment of Federal Reserve interest rate hike expectations.
Investors are now looking to the Federal Open Market Committee (FOMC) Minutes from the June policy meeting, due on Wednesday, for additional clarity on the US interest rate outlook and any nuances in policymakers’ discussions.
Euro Holds Firm Against Peers Despite Softer Inflation
While the US Dollar has gained some ground against the Euro, the single currency continues to outperform several other majors, even as concerns about further European Central Bank tightening this year have receded.
Expectations for additional ECB rate hikes are likely to soften after the Eurozone core Harmonized Index of Consumer Prices (HICP) decelerated more than anticipated in June. The flash core HICP – which strips out food, energy, alcohol, and tobacco – came in at 2.4%, undershooting both the consensus and the prior 2.6% reading.