A concentrated look at why the euro slipped to around 1.15 in early April 2026: renewed Middle East energy shocks pushed inflation worries higher, while ECB hawkish rhetoric provided only temporary support. Key data from MUFG and the ECB show a multi-front depreciation against the dollar and trade-weighted baskets.

Over the past week EUR/USD traded in a tight band as Middle East energy concerns, German inflation data and shifting ECB/Fed expectations pushed the euro lower. Geopolitical risk and safe‑haven demand for the U.S. dollar drove short-term moves, with the pair oscillating roughly between 1.148 and 1.160.

Last week’s euro dynamics were driven by higher ECB rate‑hike odds and Middle East supply concerns. EUR/USD held a 1.14–1.18 range as markets priced tighter policy amid inflation risks; digital‑euro progress remains strategically important but not rate‑moving.

EUR/USD dipped about 0.6% over the past week, pressured by a sharp rise in European energy costs, renewed USD strength amid Fed/inflation repricing, and bearish technicals. Key support sits around 1.1505; a breach could expose deeper downside toward 1.1325.

Over the past week the euro strengthened modestly against the dollar as USD weakness and commodity moves intersected with ECB policy signals. Key data: ECB reference rate near $1.1618, EUR/USD intraday move to $1.1636 on March 11, and local EUR/UAH volatility in Ukraine.

EUR/USD consolidated around 1.18 after a recent run toward a four-year high near 1.2020. With the ECB meeting and US economic data in focus, rate differentials and dollar strength remain the dominant drivers of short-term euro movements.