Dollar Bounces Back Against Euro as September Hike Odds Plummet

The EUR/USD pair has been trading near 1.1550 in the European session on Monday, down about 0.10% from Friday's high of 1.1581.

This level was set after a sharp decline in the dollar last week following the release of July nonfarm payrolls data, which showed a contraction in jobs and wages, reducing the likelihood of further Federal Reserve tightening.

Despite this, the euro does not have its own fundamentals to support it, as the European Central Bank's deposit facility rate is 2.25%, compared to the Federal Reserve's rate of 3.75%, leaving a 150 basis point carry gap in favor of the dollar.