On Wednesday, the euro struggled to make progress versus a robust dollar and was stuck near $1.11.
Later this week, it was the forex markets that is mostly calm ahead of a critical meeting of central bankers.
Markets are rushing to price significant easing from central banks in the United States and Europe.
The outlook for euro/dollar will be subject largely on whether or not policymakers live up to those prospects.
On Friday, a gathering will be held at Jackson Hole, Wyoming with officials from major central banks.
This is due to markets being focused on a scheduled speech by Federal Reserve Chair Jerome Powell.
The central bank in July will cut rates for the first time. This was after it has confronted rising risks to the U.S. economy.
A strategist at Credit Agricole, Manuel Oliveri, said, “In the big scheme of things, markets are relatively range-bound, with the focus on Jackson Hole later this week.”
The euro was last below 0.1% at $1.1092. The U.S. dollar index, which measures the dollar against a basket of currencies, grew 0.1% to 98.265.
Euro to Strengthen by September
Oliveri assumes the euro to toughen towards $1.12 by September. It is even though the European Central Bank will struggle to surpass investor prospects for cutting rates.
Lastly, he said, “Fiscal stimulus is a positive for the currency.”
The dollar has also been supported by the discussion of more spending by the U.S. President Donald Trump on Tuesday.
His administration was considering potential tax cuts on wages as well as profits from asset sales.
On Tuesday, the single currency was little moved after Italy’s Prime Minister Giuseppe Conte announced his resignation. The announcement came with some investors that is certain of the move. They say there is now a very huge chance of a snap general election.
Elsewhere, sterling was the big focus of Prime Minister Boris Johnson. He also headed to Berlin to meet Chancellor Angela Merkel for meetings over Brexit.
Meanwhile, the pound jumped on Tuesday after Merkel raised the prospect of practical solutions to the so-called backstop. This is known as an insurance policy for the Irish border after Brexit that London faces.