EUR/USD puts the 1.0600 neighbourhood to the test amidst the continuation of the gradual decline on Thursday, always against the backdrop of the relentless march north in the greenback.
Indeed, the pair navigates an area last traded during the first week of the new year amidst the equally, albeit in the opposite direction, uptick in the greenback to new multi-week highs in the 104.66/70 band.
EUR/USD loses further traction and slips back to the sub-1.0600 region, or multi-week lows, on Thursday.
In the meantime, price action around the European currency should continue to closely follow dollar dynamics, as well as the potential next moves from the ECB after the bank has already anticipated another 50 bps rate raise at the March event.
Back to the euro area, recession concerns now appear to have dwindled, which at the same time remain an important driver sustaining the ongoing recovery in the single currency as well as the hawkish narrative from the ECB.