**Euro Slips for Third Straight Day Amid Dollar Strength and US Data Watch**
The euro has weakened for a third consecutive day against the US dollar, sliding to around 1.1240 during early Asian trading on May 29—its lowest level in recent weeks. This drop comes as the US dollar regains strength, with markets now turning their attention to the upcoming release of the US Q1 annualized GDP figures. Amid growing uncertainty, many investors are staying on the sidelines, waiting for clearer direction.
**Dollar Strength Keeps Euro Under Pressure**
The recent USD rally has been fueled by stronger-than-expected US economic data. In particular, May’s consumer confidence readings came in above forecasts, reinforcing a narrative of resilience in the US economy and driving demand for the dollar. The US Dollar Index (DXY) climbed back to higher levels, while the euro continued to face headwinds. The EUR/USD pair has now broken below the 1.1400 level for the second straight session, touching as low as 1.1240 earlier today, with bearish momentum still in play.
**Unresolved ECB Policy Direction Weighs on Euro**
Adding to the euro’s struggles is the lack of clarity from the European Central Bank. Policymakers remain divided on the timing of rate cuts. While some officials are leaning toward starting the process as early as June, others are urging caution, arguing more data is needed before making a move. This policy indecision has dampened market confidence, reducing buying interest in the euro.
**Focus Turns to US GDP and Fed Minutes**
All eyes are now on tonight’s US Q1 GDP report. A stronger-than-expected outcome could further cement the view of a robust US economy and offer more fuel to the dollar’s rally—potentially creating new downward pressure on EUR/USD. In addition, investors are awaiting the release of the latest Federal Reserve meeting minutes. Markets are hoping to gain more insight into the Fed’s policy stance and whether a high interest-rate environment is likely to persist.
**EUR/USD Technical Outlook**
On the technical chart, EUR/USD has now broken below its 50-day moving average—a level many traders view as a key line of support. If the pair fails to reclaim 1.1250, near-term losses toward the next support at 1.1065 could be on the table. From a trading perspective, some analysts suggest watching for short opportunities on any rebounds, with stop-loss levels potentially set above 1.1365 to manage risk.
**Conclusion**
The dollar continues to gain ground, driven by solid US data and improving risk sentiment. In contrast, the euro is under pressure from policy uncertainty at the ECB and the strength of the US economy. With key US data and Fed minutes set to be released later today, volatility may rise. Traders should stay alert and be ready to adjust their strategies based on incoming data and policy outlooks.
