EUR/USD holds positive momentum near 1.0948 despite the dollar’s rebound. US Non-Farm Payrolls (NFP) rose by 216,000 in December compared to 173,000 in November. The Euro-dollar pair is attracting buyers in the early Asian session on Monday. The major pair has bounced off multi-week lows of 1.0876 and is holding around 1.0948, up 0.09% for the day.

The Federal Reserve’s (Fed) turnaround is supported by a moderate rise in inflation, but not necessarily an aggressive rate cut. Investors will be focused on Thursday’s U.S. inflation data for further evidence of price pressures. The market estimates the core consumer price index (CPI) will rise 3.2% year-on-year, while core CPI is forecast to fall to 3.8% year-on-year.

U.S. labor market data released on Friday cast doubt on financial markets’ expectations that the Federal Reserve would begin cutting interest rates in March. On Friday, the Labor Department reported that U.S. non-farm payrolls (NFP) rose by 216,000 jobs in December versus 173,000 in November, above the market consensus forecast of 170,000.

Recommendations: Trade in the channel 1.0900 – 1.1000 on bounces from the levels.