Euro Gains on Waller's Dovish Comments, US Dollar Retreats

The EUR/USD has gained around 0.30% on Thursday as the US Dollar retreated to a one-week low.

This comes after dovish comments from Federal Reserve Governor Christopher Waller, who said he is seeing signs of disinflation in recent data and would support keeping interest rates unchanged if August inflation data confirms progress.

Waller's comments reduced expectations of a rate hike this month, with the probability of a rate hike at the Fed's September 15-16 meeting falling to around 48% from 63% a day earlier.

The European Central Bank is widely expected to raise interest rates by 25 basis points next week, which could further weigh on the US Dollar.