The EUR/USD pair extends its retracement slide, slipping for the second consecutive day after reaching levels just above the psychological 1.1000 mark. Currently trading around the 1.0940-1.0935 region, the pair has declined nearly 0.20% during the day.
The US Dollar (USD) gains positive traction as it recovers from Thursday’s lowest level since May 11. This rebound puts pressure on the EUR/USD pair, with the USD benefiting from Federal Reserve (Fed) Chair Jerome Powell’s hawkish outlook. Powell’s comments during congressional testimony support the case for more interest rate hikes at a cautious pace to address persistently high inflation.
Powell’s remarks about the Fed’s view on rate cuts being unlikely for the near future strengthen the Greenback, overshadowing Thursday’s weak US macro data that indicated a softening labor market with steady Initial Jobless Claims at a 20-month high.
