No significant events are expected today.

The US Dollar could strengthen as recent US PMI data heightens the likelihood that the Federal Reserve may slow the pace of rate cuts.

The Euro has faced challenges as recent HCOB PMI data pointed to persistent weakness in business activity within the Eurozone.

The EUR/USD pair is recovering from the two-year low of 1.0332 recorded on Friday and is trading near 1.0480 during the Asian session on Monday. This rebound might be linked to a correction in the US Dollar (USD), despite strong preliminary PMI data from S&P Global in the US released during the previous session.

Meanwhile, the US Dollar Index (DXY), which tracks the performance of the USD against six major currencies, has decreased to 107.00 after reaching a two-year high of 108.07 on Friday. However, downside risks for the USD remain limited as recent economic data has reinforced expectations that the Federal Reserve might slow the pace of rate cuts.

The S&P Global US Composite PMI for November rose to 55.3, indicating the strongest growth in private sector activity since April 2022. The US Services PMI increased to 57.0 from 55.0 in October, significantly exceeding market expectations of 55.2, marking the sharpest growth in the services sector since March 2022. Meanwhile, the US Manufacturing PMI rose to 48.8 from 48.5 in October, in line with market forecasts.

Recommendations: Monitor the 1.0480 level. If the pair consolidates below this level, consider Sell positions. If it rebounds, consider Buy positions.