Post #15914

EUR/USD Rebounds Modestly, but the Bigger Picture Still Looks Fragile EUR/USD is seeing a modest rebound, with the euro pushing back toward 1.165 after the early-week selloff. That said, the pair is still holding near one-and-a-half-month lows, so this looks more like a bounce within weakness than a full reversal for now. The euro is catching a small lift as the dollar softens on reports that Iran may be open to discussing terms to end the war. That has taken some pressure off the greenback in the short term, but the broader backdrop still remains fragile. On the data side, Eurozone inflation came in firmer than expected, with both headline and core CPI running hot, while unemployment ticked lower to 6.1%. That has shifted market expectations meaningfully, with traders now leaning toward the possibility of an ECB hike by year-end instead of the cut that was being priced not long ago. - Alan