EUR/USD Pair Reverses Gains Amid US Dollar Bounce-Back

The EUR/USD pair reversed its gains on Monday after failing to break above 1.1418.

This came as the US Dollar Index (DXY) rose by almost 0.2% during European trade, nearing 103.95.

The pair's decline is attributed to a bounce-back in the US Dollar following a weak start of the week due to diminished tensions between the United States and Iran over the weekend.

This week's major events include the Federal Reserve's monetary policy announcement on Wednesday, which is expected to leave interest rates unchanged at 3.50%-3.75%, and the release of Eurozone Harmonized Index of Consumer Prices (HICP) data for July on Friday.

The inflation data will influence European Central Bank officials' expectations regarding interest rate adjustments due to concerns over prolonged elevated inflationary pressures.