No major events expected today.

The Euro-Dollar pair settled near the 1.0895 mark in the early Asian session on Monday. The decline in the US Dollar (USD) provides some support to the main pair. Increased expectations for a Federal Reserve (Fed) rate cut in September and instability in the US labor market put pressure on the dollar. According to the CME FedWatch Tool, financial markets currently assess the probability of a rate change at the July meeting at less than 5%, with almost a full rate cut expected in September. New York Fed President John Williams said on Friday that a rate cut could be justified in the coming months, but not at the July meeting.

As for the euro, the European Central Bank (ECB) decision on interest rates remained unchanged, as expected. ECB President Christine Lagarde refrained from making a decision to cut rates. Lagarde stated that while inflation in the eurozone is on a “disinflationary path,” the ECB will still have to keep rates high. Markets estimated the probability of a September rate cut at 65%, compared to 73% just before the decision. The ECB’s data-dependent approach is likely to support the common currency in the near term.

Recommendations: Trade mainly with Buy orders from the current price level.