Euro Stabilizes Against US Dollar Amid Focus on Central Bank Policy

The Euro has stabilized against the US Dollar after recent losses and is attempting a modest recovery from its upper-1.15 lows, according to Scotiabank strategists Shaun Osborne and Eric Theoret.

They emphasize that focus will remain on European Central Bank (ECB) and Federal Reserve (Fed) policy as the next ECB decision approaches on September 10 and the Fed's on September 16.

The euro area Consumer Price Index (CPI) is expected to make a fresh cycle peak of 3.3% this week, which could impact the market's outlook.

Osborne and Theoret see limited scope for further downside from here, with support at 1.1550 and 1.1520, and anticipate a near-term range bound between 1.1550 and 1.1650.