The EUR/USD currency pair has made a significant recovery, trading close to 1.1200 during the Asian session on Monday. This upswing follows a period of losses and is attributed to a weakening U.S. Dollar prompted by Moody’s recent downgrade of the U.S. credit rating from Aaa to Aa1.

The downgrade, which cites increasing government debt and rising interest payment burdens, has placed additional pressure on the dollar. As a result, the euro is gaining ground, highlighting the continuing volatility in the forex markets. Investors are closely watching developments that could further impact the dollar’s performance, including inflation data and central bank announcements.