EUR/USD Correction Underway as US Dollar Continues Recovery

The EUR/USD currency pair is experiencing a correction as the US Dollar continues to recover. The Euro trades lower against the Greenback, extending its decline from a four-day high of 1.1711 to near 1.1655 during the European trading session.

Market experts believe that while caution ahead of key events has given some ground to the US Dollar, there is no indication of a change in trend for the currency. Strategists at Scotiabank argue that calendar and event risk this week is significant, creating potential for moderate gains in the USD.

The outlook for the Euro remains firm, with expectations that the European Central Bank will raise interest rates next month. Analysts at Nomura expect the ECB to increase rates in September, citing recent activity data as evidence of a strong economy.