Euro Consolidates at Mid-1.15s Amid Fed-Driven Dollar Decline

The Euro has been experiencing a consolidation phase around the mid-1.15s against the US Dollar, according to Scotiabank strategists Shaun Osborne and Eric Theoret.

This steady movement follows the Dollar's decline in late July, which was driven by the Federal Reserve's actions.

The EUR/USD pair is currently trading close to a fair value estimate based on 2-year Germany-US yield spreads, with sentiment-driven correlations strengthening.

A quiet data and European Central Bank calendar point towards continued range trading for the Euro in the near term.