The pair retreats slightly in early European trade as the US Dollar rebounds ahead of Wednesday’s FOMC minutes release.
The EUR/USD pair fell to 1.1428 in early European trading on Monday, pressured by a modest recovery in the US Dollar. The Dollar Index (DXY) rose 0.1% to near 101.00, reversing some losses after last week’s US Nonfarm Payrolls report signaled softer labor demand.
Traders had pared back Federal Reserve rate hike expectations following the June NFP data, weighing on the USD. However, focus now shifts to the FOMC minutes from the June meeting, due Wednesday, for further clues on the US interest rate outlook. The Euro remains resilient against peers despite easing ECB rate hike fears.
The US Dollar’s rebound follows a negative weekly close, though the Euro has outperformed other major currencies today.