Euro nears weekly high of 1.1435 as selling pressure eases

The euro traded near a key weekly high against the U.S. dollar on Thursday, July 2, as technical indicators suggested a recent period of intense selling pressure was beginning to ease. The EURUSD pair approached the 1.1435 level, a significant resistance point, after trimming losses from earlier in the week.

The shift comes amid a broader pullback in the U.S. dollar, which had strengthened on expectations of continued aggressive interest rate hikes from the Federal Reserve. Market participants are now reassessing that outlook ahead of the release of the U.S. Nonfarm Payrolls report for June, a key gauge of labor market strength. On the euro side, the currency has faced persistent pressure from cooling inflation data in the Eurozone. Preliminary figures showed Germany's Consumer Price Index inflation fell to 2.3% in June, below expectations, while Eurozone-wide inflation also softened more than anticipated.

This mixed fundamental backdrop has kept the pair range-bound. European Central Bank President Christine Lagarde recently indicated there was no need for forceful policy action, citing falling energy prices. Meanwhile, some U.S. economic indicators, including consumer...