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fxAug 17, 2026, 5:03 AM

Euro rallies to two-month high as dollar struggles on reduced Fed hike bets

EUR/USD extended its bounce from the 1.1500 area for a third straight session, reaching a two-month high as reduced Fed rate-hike expectations pressured the dollar.

EURUSD

EUR/USD is building on last week's rebound from the 1.1500 psychological level and attracting follow-through buyers for the third consecutive session. The pair has climbed to a two-month high as the US dollar struggles amid receding Federal Reserve rate-hike bets.

The single currency is now eyeing the 1.1600 level, supported by the shift in rate expectations that is weighing on the dollar broadly.

Source: FXStreet Forex News