The background for the growth of the Euro against the US dollar could be the speech of the chairman of the US Federal Reserve Jerome Powell. In his speech, Powell noted that the latest data on inflation in the United States indicate positive trends. He stressed that the last three inflation indicators show a decrease, which strengthens confidence in the return of inflation to the Fed's target level of 2%.

These comments led to significant changes in market expectations regarding the Fed's future policy. Traders are now confident of an interest rate cut in September.

However, the Euro looks to have lost its strength on the way to the upper limit of the range, where significant volumes may now be present, preventing further growth. Instead of strengthening its position, the Euro reacted with a significant (from the point of view of intraday trading) decline, retreating from the recently reached highs. The closing of the trading session (day) below 1.0880 may serve as a trigger for a further decline in the EUR/USD exchange rate towards the inside of the range.