Euro Retreats as US Dollar Hit 2-Week High
The euro retreated to $1.13 on Thursday in the forex market as the US dollar rallied for two weeks on improved trade optimism. The EUR-USD pairs had climbed to $1.15 because forex traders were dumping the greenback as the US disrupted globalisation of trade.
According to FX market data, the euro edged toward $1.13 in thin trading on the first day of May, after gaining more than 5% against the U.S. dollar in April. The DXY dollar index rises to a high of 100.0260.
This happened as the greenback found support amid growing optimism that trade tensions may ease following President Donald Trump’s signals of potential agreements with India, Japan, and South Korea, along with his confidence in a deal with China.
Meanwhile, investors digested a raft of recent economic data and looked ahead to Friday’s U.S. non-farm payrolls report for further insight into the Fed’s policy outlook.
The U.S. economy unexpectedly contracted at an annualized rate of 0.3% in Q1 2025, driven in part by a spike in imports ahead of expected Trump administration tariffs. In contrast, the Eurozone economy grew by a better-than-expected 0.4%, buoyed by strong domestic demand.
Macro indicator consumer price index showed German headline inflation eased to 2.1% in April, though core inflation ticked higher, while France’s annual rate remained unchanged at 0.8%.
The dollar rises to a two-week high as its recent selloff takes a pause amid optimism that the global trade war is easing. The Trump administration earlier this week moved to soften the impact of automotive tariffs and has signaled progress in trade talks with other countries. #Euro Retreats as US Dollar Hit 2-Week High#
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