No significant events are expected today.

EUR/USD remains under pressure amid steady demand for the US dollar ahead of the Federal Reserve meeting on October 29–30 and a tense news backdrop in the Eurozone. The market is already pricing in potential policy easing in the US, but the key factor for the exchange rate remains the Fed’s rhetoric regarding inflation prospects and the interest rate path through the end of the year. Any signals of caution from the regulator support US yields and demand for the dollar, limiting euro growth.

In the Eurozone, additional pressure comes from fiscal risks in certain member states and slowing business activity, which weakens capital inflows into regional assets. Investors are closely monitoring signals on France’s public finances as well as confidence and PMI indicators: deterioration in fiscal or economic conditions reduces risk appetite for European assets and weighs on the currency.

In the short term, the balance of factors remains in favor of the dollar: US labor market and inflation data shape rate expectations, and the high premium in real US yields continues to draw capital into dollar-denominated instruments. Overall, this justifies maintaining a moderately defensive stance on the pair, with a target below 1.1600 and limited upside risk.

Recommendations: SELL 1.1640, SL 1.1670, TP 1.1590