Euro Steadies as Markets Await Sanctions Announcement and Inflation Data

The Euro has stabilized against the US Dollar on Monday as markets await further developments in global trade. The EUR/USD pair is trading around 1.1670, near levels last seen in mid-May.

Despite some short-term stabilization in the Greenback, concerns over US fiscal policy and rising government debt remain a concern. The US Treasury's surprise buyback announcement last week sparked volatility, but markets have since settled into a calmer tone.

The United States is set to announce a fresh package of sanctions against Iran later on Monday, with Treasury Secretary Scott Bessent describing it as an 'economic D-Day'. Iran has vowed to counter the move, stating that it will use all its bilateral capabilities to confront US economic sanctions.

Later this week, focus shifts to the US Personal Consumption Expenditures (PCE) Price Index on Wednesday. A soft inflation reading could strengthen expectations that the Federal Reserve will leave interest rates unchanged in September and put fresh pressure on the US Dollar.