On Friday, the second quarter gross domestic product data was released which showed that the US economy expanded at a pace of 2.6% in the three months ending June. This was slightly below consensus estimates of 2.7%. The greenback extended the declines falling to a fresh 14-month low as a result. The US dollar index was down 0.7% closing at 93.25 which marked the lowest close since May last year.

Looking ahead, the economic data today will focus on the flash inflation estimates for the eurozone. Economists are expecting inflation to remain steady, rising 1.3% on the headline and 1.1% on the core, same as the month before.

Later in the day, the US Chicago PMI and pending home sales report will be released. With today being the last trading day of the month, expect to see some profit booking and some volatility in the US dollar.

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