No significant events are expected today.

The EUR/USD pair is declining to the 1.0480 mark during the Asian session on Monday as the US Dollar Index (DXY), which measures the value of the US dollar against six major currencies, recovers from its monthly low of 107.22 reached on Friday. At the time of writing, DXY is trading near the 107.60 mark.

The US dollar is strengthening following mixed data on the US Purchasing Managers’ Index (PMI). Uncertainty related to the implications of US President Donald Trump’s trade and immigration policies may support the Federal Reserve’s cautious approach to cutting interest rates this year.

Data released by S&P Global on Friday showed that the US composite PMI dropped to 52.4 in January from 55.4 in December. Meanwhile, the manufacturing PMI improved to 50.1 in January from 49.4 previously, exceeding the estimate of 49.6. The services PMI fell to 52.8 in January from 56.8 in December, below the market consensus forecast of 56.5.

However, the EUR/USD pair gained some support as the euro was bolstered by the preliminary composite PMI for the Eurozone from HCOB, which rose in January after contracting over the previous two months. The HCOB flash PMI report compiled by S&P Global showed that overall business activity increased. The composite PMI rose to 50.2 from 49.6 in November. Economists had expected the PMI to continue falling, albeit at a slower pace, to 49.7.

Recommendations: Monitor the 1.0450 level. If it breaks below, consider Sell positions; in case of a rebound, consider Buy positions.