EUR/USD Breaks Below 1.1500 as Hawkish Fed Boosts Dollar

Key Facts

In a move reflecting the shift in US monetary policy, the EUR/USD pair fell below the key 1.1500 level on Thursday due to US dollar strength. According to reports, the Federal Reserve struck a more hawkish tone than anticipated, boosting Treasury yields and dollar demand. This shift contributed to breaking a major psychological support level, driven by changing market expectations regarding the US central bank's policy path.

This decline comes at a time when economic data in the Eurozone showed mixed results, with Germany's annual CPI recorded at 2.6% in June compared to 2.9% previously, per market data. Conversely, US Michigan Consumer Sentiment data showed unexpected strength, reaching 48.9 points and exceeding the 46-point forecast, which further bolstered the dollar's attractiveness against other major currencies.

Traders are currently monitoring the next support levels for EUR/USD, which is trading below 1.1500 (intraday, June 18, 2026). Looking at the economic calendar, markets are awaiting further commentary from central bank officials, particularly following recent speeches by ECB's Lagarde, to assess the persistence of selling pressure on the single currency amid the widening yield gap between US and European bonds.