The EUR/USD pair is facing downward pressure, dropping to a multi-week low due to various factors. The strong US Non-Farm Payrolls (NFP) report has tempered expectations of a Fed rate cut, boosting the US Dollar. Political uncertainty in the Eurozone, including gains by Eurosceptic nationalists in European Parliament elections and French President Macron’s snap election decision, is also weighing on the Euro.
Investors are hesitant to make big bets on the EUR/USD pair ahead of the upcoming FOMC policy decision and US consumer inflation figures. The path of least resistance appears to be to the downside for the currency pair, with traders keeping a close eye on central bank decisions and economic data releases.