EUR/USD Slips Within Range After Positive Eurozone Sentiment Data
The EUR/USD pair is trading sideways, with upside attempts remaining limited below 1.2000. Meanwhile, Eurozone economic sentiment and industrial confidence data beat expectations in January, helping support the euro despite the range-bound price action.
The EUR/USD pair is trading around 1.1950 at the time of writing, pulling back from session highs near 1.2000 ahead of the European open, while remaining above Tuesday’s low near 1.1900. The pair is effectively flat on the daily chart despite upbeat Eurozone sentiment data, with downside attempts remaining limited as recent U.S. recovery efforts lack follow-through.
The Federal Reserve kept interest rates unchanged, while Chair Jerome Powell expressed increased confidence in the U.S. economy and labor market. His comments reinforced expectations of a steady monetary policy stance in the coming months. However, markets continue to price in two U.S. interest rate cuts later this year.
Separately, U.S. Treasury Secretary Scott Bessent clarified remarks made by President Donald Trump, reaffirming Washington’s commitment to a “strong dollar” policy. While these comments offered some support to the U.S. dollar, they failed to trigger a sustained rebound.
