No significant events are expected today.

Today, the EUR/USD pair is trading around the 1.0920 mark during the Asian session on Monday. Traders are awaiting preliminary data on the Eurozone’s Gross Domestic Product (GDP) for the second quarter, which is scheduled to be released on Wednesday.

The risk-sensitive euro may face challenges due to escalating geopolitical tensions in the Middle East. On Sunday, Defense Minister Yoav Gallant informed U.S. Defense Secretary Lloyd Austin that Iran’s military movements indicate preparations for a major strike against Israel. According to Axios author Barak Ravid, this potential action is seen as retaliation for the assassination of Hamas leader Ismail Haniyeh in Tehran at the end of July.

As for the dollar, investors are likely to focus on U.S. producer inflation data, set to be released on Tuesday, and consumer inflation data on Wednesday. Traders are looking for confirmation that price growth remains stable.

Expectations of a possible interest rate cut by the Federal Reserve (Fed) in September may put pressure on the U.S. dollar (USD), potentially providing support for the EUR/USD pair. The CME FedWatch tool indicates a 51.5% probability of a 25 basis point rate cut at the September meeting, significantly higher than the 26.0% probability indicated a week ago.

On Sunday, Fed Chair Michelle Bowman stated that she still sees upside risks to inflation and ongoing strength in the labor market. This suggests that the Fed may not be ready to cut rates at the next meeting in September, Bloomberg reports.

Recommendations: Primarily consider buy orders at the price level of 1.0950. Consider sell orders at the price level of 1.0900.