EUR/USD pulled back from recent highs to 1.1704, losing ground as DXY firmed. Earlier in the week, the euro briefly strengthened after France’s government collapsed following a no-confidence vote.
The market reaction has been muted, with EUR/USD failing to maintain momentum above 1.1751.
With price backing off recent highs, the pair looks vulnerable to further downside if U.S. inflation data surprises to the upside.
