The euro dropped to 1.1730 as the dollar strengthened after the Fed's rate cut, despite cautious signals from Powell.

The euro fell against the U.S. dollar, dropping to around 1.1730, as the dollar strengthened following the Federal Reserve’s expected 0.25% rate cut. Fed Chair Jerome Powell’s cautious tone, emphasizing a gradual, data-dependent approach and ongoing inflation concerns, supported the dollar despite the cut. The European Central Bank held rates steady, with mixed signals from officials on future cuts. The euro declined for four consecutive days, pressured by a stronger dollar, political unrest in France, and uncertainty over monetary policy in both regions. Traders are focused on upcoming Eurozone consumer confidence data and Fed commentary, with EUR/USD seen in a range of 1.1715 to 1.1820, facing key support near 1.1720 and resistance around 1.1800.