EUR/USD Slides as Dollar Demand Surges on Hawkish Fed Sentiment

EUR/USD has come under renewed selling pressure as market sentiment shifts decisively in favor of the US dollar, driven by expectations that the Federal Reserve will maintain its restrictive monetary policy stance for longer than previously anticipated. The pair's decline reflects a broader reassessment of interest rate differentials between the Fed and the European Central Bank, with traders pricing in a more hawkish US rate trajectory. While the ECB has signaled openness to further tightening if inflation surprises to the upside, the Fed's relatively more aggressive posture continues to attract capital flows toward the greenback. The US Dollar Index futures have firmed, reinforcing downside pressure on EUR/USD. Technically, the pair faces immediate support near recent lows, with a break below potentially opening the door to further declines. Resistance overhead remains capped at prior consolidation levels. Traders should monitor upcoming US economic data releases for confirmation of the dollar's bullish momentum and any shifts in ECB rhetoric.