ECB Rate Hike Expectations Weighed Down by Weak German Data

Germany's industrial output declined unexpectedly in July, falling 1.1% month-on-month compared to expectations of a 0.3% rise.

The year-over-year contraction widened to 1.6%, with weak data failing to provide support for the euro.

Geopolitical tensions in the Middle East pushed oil prices higher, adding further downward pressure on the euro.

The U.S. dollar's rebound was capped by the Labor Day holiday, which kept markets closed.