{
  "id": 2391893,
  "title": "Euro pares gains against US Dollar but eyes fourth weekly advance",
  "url": "https://urgent.news/2026/08/21/euro-pares-gains-against-us-dollar-but-eyes-fourth-weekly-advance",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-08-21T14:09:33.000Z",
  "source": {
    "name": "FXStreet",
    "slug": "fxstreet",
    "url": "https://www.fxstreet.com/news/euro-pares-gains-against-us-dollar-but-eyes-fourth-weekly-advance-202608211409"
  },
  "original_language": "en",
  "account": "The Euro (EUR) experienced a temporary setback against the US Dollar (USD), but remains on track for its fourth consecutive weekly gain. This comes after the USD steadied after testing its three-month low, which had been reached the previous day. The EUR/USD pair is currently trading around 1.1677, down from a peak of 1.1711 observed on the same day. Preliminary Purchasing Managers Index (PMI) data for the US showed that business activity remained in expansion in August, with the Composite PMI rising to a 52-week high of 56.0 and the Services PMI reaching a 20-month high of 56.8. The Manufacturing PMI, however, eased to a five-month low of 53.2. The US Dollar Index (DXY), which tracks the Greenback's value against a basket of six major currencies, is at 98.82, recovering from a low of 98.56. Despite the recent pullback, the Euro/USD pair is poised for a fourth consecutive weekly advance, as the broader macroeconomic environment remains unfavourable for the Greenback. The USD faced significant selling pressure earlier in the week following the US Treasury's decision to double its liquidity-support buybacks for longer-dated government securities, raising concerns about US fiscal credibility and the sustainability of rising government debt. Additionally, expectations of a Federal Reserve (Fed) interest rate hike have faded. The CME FedWatch Tool indicates a 65% probability that the central bank will maintain interest rates unchanged in the upcoming month, following softer US employment and inflation data for July. However, heightened energy-driven inflation risks due to the US-Iran standoff keep the possibility of a rate hike alive. The monetary policy outlook is more favorable for the Euro, with many markets anticipating the European Central Bank (ECB) to raise interest rates in September. ECB Governing Council member Martins Kazaks confirmed that the central bank is \"well positioned to tighten policy further if needed,\" with Euro area inflation remaining near 3%, above the 2% target.",
  "summary": "EUR/USD reverses its earlier gains on Friday as the US Dollar (USD) steadies after retesting the three-month low touched the previous day. At the time of writing, the pair trades around 1.1677, easing from an intraday high of 1.1711, its highest level since May 14.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}