EUR/USD surges as dollar posts worst yearly start since 1970s

EUR/USD jumped 0.6% to 1.0975, leading a broad dollar selloff as the greenback recorded its worst start to a year since the 1970s. The dollar index has plummeted 4.2% year-to-date, with EUR/USD gaining over 500 pips from January lows. European corporate earnings face headwinds from the stronger euro, with companies like Fresenius Medical Care and ASML warning of currency impacts. Market analysts estimate every 1% euro appreciation reduces European export competitiveness by 0.5-0.7%. Technical indicators show EUR/USD approaching key resistance at 1.1000, having broken through the 200-day moving average. The dollar's weakness stems from shifting Fed policy expectations and concerns over US fiscal sustainability. Near-term support for EUR/USD sits at 1.0920, with momentum indicators suggesting continued upside potential if the psychological 1.1000 barrier breaks.