No major events are expected today.

The EUR/USD pair continues to rise for the second session, trading around 1.1190 during the Asian session on Monday. The growth of the EUR/USD pair is driven by the weakening of the US dollar following the “dovish” speech by Federal Reserve Chairman Jerome Powell at the Jackson Hole symposium on Friday.

Federal Reserve Chairman Jerome Powell stated, “It’s time for a policy adjustment.” Although Powell did not specify when the rate cuts would begin or their potential size, markets expect the US central bank to announce a 25-basis-point rate cut at the September meeting.

Additionally, Philadelphia Fed President Patrick Harker emphasized the need for a gradual reduction in interest rates by the US central bank on Friday. Meanwhile, Chicago Fed President Austan Goolsbee noted that monetary policy is currently at its most restrictive, and the Fed is now focused on achieving its employment mandate.

Regarding the euro, European Central Bank (ECB) Governing Council member Olli Rehn said on Friday that slowing inflation, along with the weakness of the Eurozone economy, strengthens the case for reducing borrowing costs next month, according to Bloomberg. The growth outlook in Europe, particularly in the manufacturing sector, is quite weak, which further supports the argument for a rate cut in September.

Recommendations: Trading mainly with Buy orders from the current price levels.