EUR/USD Slides as Hawkish Warsh Fuels Dollar Rally
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EUR/USD came under renewed selling pressure after Fed Chair Warsh signaled a firmer policy stance than markets had priced in. His comments, framed as a 'quieter Fed' with sharper guidance, triggered broad dollar demand across G10 pairs, with the euro among the hardest hit.
The pair is now on track for a weekly loss as traders reassess the rate differential between the Fed and ECB. Warsh's remarks suggest less tolerance for policy drift, reducing expectations of near-term dollar softness that had previously supported EUR/USD upside attempts.
With the greenback index climbing broadly, EUR/USD bulls face an uphill battle unless eurozone data surprises to the upside next week.