The Euro weakened against the US Dollar on Monday after it was unable to surpass the intraday high of 1.1418, giving back most of its early gains, according to FX Street.
HSBC strategists highlighted that the EUR/USD pair faces downside risk as the European Central Bank continues to adopt a cautious, data-dependent approach and refrains from indicating further interest rate hikes, FX Street reported.
This cautious ECB stance comes at a time when Japanese investors remain attentive to global central bank policies, which influence FX flows and risk sentiment in the region.