The Euro has gained more than 1% against the US dollar as worries over emerging economies such as China and an expectation of less than 50% that the US Federal Reserve will lift interest rates at their board meeting next month.

AT 11.17am (GMT) the euro was trading at $1.1271 against it’s US counterpart reaching a 2 month high.

Traders are now pricing in a 40% chance that the US fed will move on rates in September down from 50% at the end of July which saw investors exiting their long US dollar positions.

In their latest minutes meeting the Fed noted that the possibility of a rate hike this year still exists but the market was hoping for a more concrete timing which didn’t eventuate.

Not all believe the US Fed will keep rates on holed next month including Omer Esiner, chief market analyst at Commonwealth Foreign Exchange in Washington who noted that there is still strong data out there such as yesterday’s strong jobless claims number which could see the Fed make a move next month.

"Many were disappointed that the Fed remained decidedly noncommittal (in the minutes) but we think the door to a September hike remains wide open," he said

"These are data to put into the column that argues for a September rate hike by the Fed," he added.