EUR/USD Extends Gains as Dollar Buckles on Soft US Data
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The dollar's retreat picked up pace after a batch of softer US economic data undercut confidence in near-term Fed hawkishness. EUR/USD capitalized on the shift, pushing higher as traders rotated out of long-dollar positions built earlier in the month.
Weaker readings on the US side reinforce the narrative that domestic momentum is cooling faster than policymakers anticipated, a dynamic that continues to favor the single currency in the near term.
With sentiment fragile, EUR/USD reaction to incoming US releases remains asymmetric, amplifying moves whenever data disappoints against consensus.