Dollar Surge Keeps Euro on the Back Foot Ahead of Key Economic Signals

The euro extended its losing streak against the US dollar for a fifth straight session, weighed down by renewed strength in the greenback and lingering uncertainty across the eurozone. As global markets brace for a wave of economic data, the common currency remains under pressure, struggling to find momentum amid shifting investor sentiment.

The dollar’s climb—now hovering near its highest level in three months—reflects a broader recalibration in market expectations. Hopes for a near-term rate cut in the US have faded, replaced by a growing belief that borrowing costs may remain elevated for longer. This shift has fueled demand for the dollar, especially as investors seek stability in a climate marked by cautious growth forecasts and persistent inflation concerns.

In contrast, the euro has been left exposed. With few economic releases from the bloc this week, the currency has been largely reactive to external forces. Recent indicators from the eurozone have failed to inspire confidence, reinforcing fears of a sluggish recovery and leaving the euro vulnerable to further declines.

All eyes now turn to upcoming data releases that could reshape the outlook. In the US, fresh reports on employment and service-sector activity are expected to offer new clues about the health of the economy. These figures will play a key role in shaping expectations ahead of the delayed official payroll numbers.

Meanwhile, eurozone watchers are focused on the latest readings for services activity and producer prices. Any signs of continued weakness could deepen concerns about stagnation and add to the euro’s downward pressure.

The euro-dollar exchange rate has now dipped below key support levels, approaching figures last seen in late summer. Traders remain cautious, waiting to see whether the dollar’s momentum will continue—or if the euro can mount a short-term recovery.