The downbeat US data also propels fears of a recession in the world’s largest economy and weigh on the US Dollar, as well as fuels the EUR/USD price. As per the latest research, the Federal Reserve’s (Fed) preferred gauge of economic health backed the recession woes, via bond market clues. Reuters said, “Research from the Fed has argued that the ‘near-term forward spread’ comparing the forward rate on Treasury bills 18 months from now with the current yield on a three-month Treasury bill was the most reliable bond market signal of an imminent economic contraction.”

On a different page, China’s military drills near Taiwan Strait escalates US-China tension and allow the US Dollar sellers to take a breather after the US Dollar Index (DXY) posted a three-week downtrend.

While the fresh hawkish bets on the Fed and upbeat US data, as well as geopolitical woes, can pause the US Dollar weakness, the EUR/USD bears are far from the table and needs more clues to extend the upward trajectory amid the Easter Monday holidays.