EUR/USD Approaches Yearly Low at 1.1330 Ahead of US PCE Data

The euro extended its decline against the US dollar for a fourth consecutive trading session on Thursday, edging toward the yearly low of 1.1330. The move is driven by growing market expectations that the Federal Reserve will continue raising interest rates, bolstering the greenback.

Traders are now turning their attention to the upcoming US Personal Consumption Expenditures (PCE) Price Index release, the Fed's preferred inflation gauge. The data is expected to provide further clues on the pace of monetary tightening. A hotter-than-expected reading could reinforce hawkish bets and push EUR/USD to test new lows.

Technically, the 1.1330 level is a key support; a break below it would mark the euro's weakest point against the dollar since late 2022.