EUR/USD jumps to near 1.1400 in Monday's European session. The major currency pair aims to reclaim the over-three-year high of 1.1474, which it posted on Friday.
The pair demonstrates sheer strength as the US Dollar (USD) continues to dive amid growing fears of United States (US) stagflation, a situation in which inflation increases, the economy deteriorates, and employment cools down.
The US Dollar Index (DXY), which gauges the Greenback's value against six major currencies, sees more downside below the recent lows of 99.00.
Financial market participants are anticipating US stagflation amid deteriorating consumer sentiment and de-anchoring consumer inflation expectations.
The University of Michigan (UoM) showed on Friday that the preliminary Consumer Sentiment Index came in significantly lower at 50.8 in April, the lowest level seen since June 2022. US households are worried about the deepening risks of a recession due to the escalating tariff war with China.
Source: FXStreet
