The Euro weakened further against the US Dollar on Tuesday, reaching fresh 17-month lows with intraday trading fluctuating between 1.1145 and 1.1185, according to FX Street. Analysts from United Overseas Bank, Quek Ser Leang and Lee Sue Ann, noted that despite some gains above 1.1150 near 1.1175 during early European hours, the overall trend remains bearish.
Technical indicators support this downward pressure, with the EUR/USD pair trading below its 100-day simple moving average. The US Dollar’s strength is underpinned by expectations of a hawkish Federal Reserve and rising US Treasury yields, which continue to attract investor interest.
For Japanese markets, this development is significant as currency fluctuations impact export competitiveness and cross-border investment flows, particularly in equities and FX trading. Market participants should monitor Federal Reserve signals closely, as they will likely influence USD/JPY and related asset classes.