EUR/USD Hits Two-Month High as Fed Hike Odds Fall

The EUR/USD currency pair extended its advance for a third consecutive session on Monday, reaching a two-month high of 1.1606 and clearing the August peak at 1.1581.

The euro built this move on last week's bounce from the vicinity of the 1.1500 psychological level, attracting follow-through buyers at each attempt higher, while the dollar supplied the entire impulse.

The US Dollar Index languished near the lower end of its monthly range, printing 99.49 before sliding to 99.363, down 0.20%, as a Bloomberg gauge of the currency slipped 0.1% toward a third straight decline and levels last seen in May.

The prevalent dollar selling bias favours bullish traders across the majors, with MSCI's emerging-market currency index hitting an intraday record led by the Taiwanese dollar and Thai baht.