Important events today:

15:00 UTC – USD: – ISM services sector business activity index

EUR/USD is under selling pressure and is trading at 1.0770 in the early hours of Asian trading on Monday. The US Dollar Index (DXY) is rising as Federal Reserve (Fed) Chairman Jerome Powell spoke again about the timing of rate cuts.

Fed Chairman Jerome Powell said that a rate cut in March is too soon, as he does not believe that by then the FOMC will have confidence that inflation will steadily return to 2%. Powell added that policymakers believe it is appropriate to cut rates this year, but that it is prudent not to rule out the possibility of a rate cut starting in the spring. The U.S. central bank will discuss the timing of easing the pace of quantitative tightening at its March meeting.

According to the U.S. Bureau of Labor Statistics data released on Friday, the number of employed in the non-farm payrolls (NFP) in January increased by 353 thousand people, which exceeded expectations of growth by 185 thousand people compared to the previous figure. Meanwhile, the unemployment rate was unchanged at 3.7%. Finally, wage growth strengthened, with average hourly earnings rising by 4.5% in January compared to the previous figure of 4.4% in December.

European Central Bank (ECB) Governing Council member Boris Vujcic said on Sunday that the central bank needs to make sure there is no second-round effect on inflation from wage growth before cutting interest rates.

Recommendations: Trade with Buy orders from the price of 1.0800. Sell at the price level below 1.0750