EUR/USD faces pressure as ECB's Makhlouf warns on demographic risks

EUR/USD remains under pressure near 1.0620, down 0.15% in early Monday trading, as ECB Governing Council member Gabriel Makhlouf highlighted long-term demographic challenges facing the Eurozone. The Irish central banker warned that aging populations threaten job growth and could create segmented inflation dynamics, complicating the ECB's price stability mandate. While migration might partially offset these effects, Makhlouf emphasized it cannot fully counter demographic headwinds. The euro's weakness comes as markets digest the implications for future ECB policy, with demographic shifts potentially constraining growth and limiting the central bank's ability to normalize rates. Technical indicators show EUR/USD testing support at 1.0600, with resistance at 1.0650. Traders are positioning for potential further downside if demographic concerns weigh on long-term growth expectations, though near-term support could emerge from any positive Eurozone data releases this week.