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Euro Extends Rally Ahead of PMI Data

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EUR/USD trades near 1.1340 during Asian hours, close to two-week highs, extending gains for a fourth session ahead of Eurozone PMI data expected to show improved growth for May.

The U.S. dollar remains under pressure as markets await Thursday’s S&P Global PMI. Moody’s downgraded the U.S. credit rating to Aa1, matching earlier cuts by Fitch and S&P, citing rising debt, projected to reach 134% of GDP by 2035, and a nearly 9% deficit.

Trump’s tax-cut plan cleared the House Rules Committee, but the DXY still trades lower near 99.50.

The key resistance is located at 1.1390, and the first support stands at 1.1260.

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