No major events are expected today.

The Euro-Dollar pair is declining after gains in the previous session, trading around 1.0300 during Asian hours on Monday. Traders are expected to closely monitor the HCOB composite Purchasing Managers’ Index (PMI) for the Eurozone and preliminary Consumer Price Index (CPI) data for Germany, which are scheduled to be released later in the day.

EUR/USD faces challenges as market analysts anticipate further declines, possibly to parity, driven by divergent monetary policy forecasts for the Federal Reserve (Fed) and the European Central Bank (ECB).

In the Eurozone, ECB policymakers advocate maintaining the current pace of monetary easing. Markets have already priced in a 113 basis point (bps) cut in ECB rates this year, implying at least four 25 bps rate reductions. This outlook reflects growing concerns that inflation in the Eurozone will not reach the ECB’s 2% target.

On Thursday, ECB Governing Council member and Bank of Greece Governor Yannis Stournaras stated in an interview with Skai Radio that the central bank’s benchmark interest rates should fall to “around 2%” by “autumn this year.” This indicates that the ECB is likely to lower the deposit rate at each of its next four meetings.

Fed officials are also signaling a more cautious approach to rate cuts in 2025. On Friday, Richmond Fed President Thomas Barkin emphasized that the base rate must remain restrictive until confidence is gained that inflation will return to the 2% target. Additionally, Fed Governor Adriana Kugler and San Francisco Fed President Mary Daly highlighted the challenges facing U.S. central bankers in slowing the pace of monetary easing this year.

Recommendations: Monitor the 1.0300 level. Consider Sell positions if the price consolidates below, or Buy positions in case of a rebound.