Eurozone Growth Data Keeps EUR/USD Sentiment Fragile
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Recent eurozone growth indicators have painted an uneven picture, with manufacturing sectors in key economies like Germany lagging while services data shows modest resilience — a divergence that keeps EUR/USD sentiment fragile.
This inconsistency complicates the ECB's policy calculus and limits the single currency's ability to capitalize fully on periods of broad dollar weakness driven by softer US data.
As a result, EUR/USD gains have often been short-lived, with rallies fading as traders reassess the underlying strength of the eurozone recovery relative to the US economic trajectory.