Euro Falls Below 1.1600 as US Dollar Selling Pressure Eases

The US Dollar's selling pressure eased on Monday, causing the Euro to dip below 1.1600 against the USD. The EUR/USD pair currently trades around 1.1580 after touching an intraday high of 1.1614, its highest level since June 17.

The Greenback's stabilization was attributed to fading expectations of a Federal Reserve rate hike in September. According to the CME FedWatch tool, markets now assign around a 70% probability that the central bank will keep rates unchanged next month.

This shift follows recent US economic data showing weaker labour demand, softer consumer spending, and easing inflationary pressure. In contrast, the European Central Bank is widely expected to raise interest rates for the second time this year in September as policymakers seek to bring inflation back toward the 2% target.