The euro pared its intraday losses on [date] as traders reassessed the interest-rate outlooks of the Federal Reserve and European Central Bank. Expectations that the Fed could keep rates higher for longer initially supported the dollar, but the euro recovered some ground after investors considered ECB officials' comments and data indicating that eurozone inflation is cooling. Analysts say markets are pricing in a potential ECB rate cut in the coming months, while the Fed remains data-dependent. The resulting policy divergence has kept the euro-dollar pair sensitive to economic indicators and central-bank communications. Resilient U.S. employment and consumer spending have pushed back expectations of a Fed cut, while eurozone manufacturing remains in contraction and weighs on recovery prospects. Upcoming inflation data, employment figures, economic indicators, central-bank meetings and speeches by Fed and ECB officials are likely to shape the pair's direction. Changes in the exchange rate can affect forex markets, trade and investment flows, European exporters, import prices and inflation.