The bar has been set very high for US Dollar gains in response to the Federal Reserve meeting on Wednesday, which forms the key event for the USD this week.
Last week Mario Draghi dismissed concerns about the impact of the appreciating Euro on the Eurozone's fragile recovery and as a consequence, the Euro rallied.
The Dollar could be bottoming, say analysts at Bank of America Merril Lynch, who have gone against the grain of bearish forecasts in their latest insight piece.
The European Central Bank (ECB) could string out its Quantitative Easing (QE) programme for longer than markets expect due to the strength of the Euro, says UBS's Beat Siegenthaler.
An uncertain outlook for the Dollar half of the EUR/USD pair is keeping hopes alive for Euro bulls despite many analysts calling a market top at the recent 1.20 peak.
The Pound continued climbing against the Rupee since our last forecast and has met and surpassed our upside target of 83.175, reaching a high of 83.210 last Friday.
The US Dollar remained broadly unchanged after the release of inflation data on Thursday, which showed personal consumption (PCE) rose by 0.1% month-on-month in July and 1.4% year-on-year (YoY).
The Euro to US Dollar pair has been in a strong uptrend since the start of the year and most recently it continued that trend up to a new high of 1.2069 on Monday.
The Pound lost ground against the Dollar during August, but since stationing on August 24 it has started a recovery which has taken it back up into the 1.29s - we look at why the Dollar keeps falling.
The EUR/USD has rebounded mainly because the Dollar weakened following comments from Fed Chair Jannet Yellen at the central banking symposium in Jackson Hole.
EUR/USD is at risk of falling over a short-term horizon, as European Central Bank (ECB) president Mario Draghi seems unlikely to make talk about reducing policy in Jackson Hole this week.
The Euro to US Dollar exchange rate has been correcting back further after comments from European Central Bank (ECB) officials stated that the strengthening currency might pose a risk to growth.