The Euro rises against the US Dollar after softer US economic data reduces bets on further Federal Reserve tightening.
The EUR/USD pair advanced to 1.1575 in early Asian trading on Monday, extending gains above 1.1550. The move follows weaker-than-expected US economic data, which has dampened expectations for additional Federal Reserve rate hikes.
The US Dollar faced downward pressure as investors recalibrated their outlook for monetary policy. Prior to the data release, markets had priced in a higher probability of further tightening, but recent indicators suggest a potential slowdown in economic activity.
The shift in sentiment has supported the Euro, with traders monitoring upcoming economic releases for further direction.