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EUR/USD slips below 1.1600 as USD selling pressure eases
The euro edged higher to 1.1614, its strongest level since June 17, before easing to about 1.1580.
EUR/USD trimmed gains on Monday as the US dollar showed signs of stabilization after early-week selling pressure, leaving the pair trading around 1.1580 after an intraday high of 1.1614, its highest since June 17, according to FXStreet.
FXStreet said the greenback is caught between fading expectations for a Federal Reserve rate hike at the September meeting and ongoing Middle East tensions that keep some demand for defensive positioning.
The outlet cited CME FedWatch data showing markets assign about a 70% probability the Fed will keep rates unchanged next month, following recent US data pointing to weaker labor demand, softer consumer spending, and easing inflation pressures.
On the other side, FXStreet noted the European Central Bank is widely expected to raise rates for the second time this year in September as it targets inflation back toward 2%, with additional catalysts ahead including the Eurozone final July HICP reading and the US FOMC minutes due Wednesday.
Latest closeEUR/USD 1.157 ▲0.4%