The EUR/USD pair continued to decline in the US trading session as new data tempered expectations of aggressive Fed actions. Investors were cautious as they awaited key economic indicators to be released later in the week.
The Federal Reserve’s policy meeting minutes showed that officials were divided on the pace of tapering asset purchases. This uncertainty weighed on the US dollar, causing the EUR/USD pair to extend its slide.
The euro also faced pressure from disappointing economic data, including weaker-than-expected German ZEW Economic Sentiment. This added to the downward momentum of the currency pair.
Overall, market participants are closely monitoring economic data and central bank actions for clues on the future direction of the EUR/USD pair. Investors are bracing for increased volatility in the coming days as key economic reports are released.