Euro Stalls Near Three-Month High as Dollar Struggles with Debt Concerns

The Euro holds steady near its three-month high as the US Dollar struggles to recover from last week's sell-off. The EUR/USD pair trades around 1.1671, below the high of 1.1711 reached on Friday.

Pakistan's Interior Minister Mohsin Naqvi announced that a meeting with Iranian President Masoud Pezeshkian yielded 'significant progress' in diplomatic efforts. This comes as the US Treasury launched a sanctions campaign aimed at cutting off financial support for Iran.

The Greenback is also weighed down by concerns about the US fiscal outlook and rising government debt, reviving the USD debasement trade. The US Dollar Index (DXY) trades around 98.95 after briefly climbing above 99.00 earlier in the day.

Stronger-than-expected German GDP data showed a 0.3% growth in the second quarter, beating expectations of 0.2%. The ECB is expected to raise borrowing costs in September, while the Fed is likely to keep rates unchanged at its upcoming meeting.