Wall Street Insights analysis points out that the euro performed strongly last week, breaking above the key resistance level of 1.16 and surging past 1.17, but it has pulled back since the opening of this Monday. The analysis suggests that this round of euro appreciation was mainly driven by the widening economic expectation gap between Europe and the US (the Eurozone's preliminary August manufacturing PMI rose to 52.8, a new high since May 2022), favorable interest rate differentials between Europe and the US (the probability of an ECB rate hike in September is as high as 95%), and increasing concerns about dollar credit. Although the medium-term positive logic remains unchanged, these positive factors may have been digested in the short term, and persistently high energy prices and political uncertainty in Germany (state elections in September) increase the risk of a euro pullback. Technically, EUR/USD may need to retrace to around 1.16-1.1630. This week, the market will focus on the Jackson Hole meeting. It is expected that the speech by Federal Reserve Chairman Kevin Warsh may not provide clear hints for the September meeting, and market volatility may be limited.