No major events are expected today.

The EUR/USD pair is rebounding after losses in the previous session and is trading near the 1.1190 level during the Asian session on Monday. The pair is gaining momentum as the U.S. dollar comes under pressure following Moody’s downgrade of the U.S. credit rating from Aaa to Aa1, citing a rising debt burden and growing interest payment obligations.

Moody’s decision follows earlier downgrades by Fitch Ratings in 2023 and Standard & Poor’s in 2011. According to Moody’s forecasts, the U.S. federal debt will reach approximately 134% of GDP by 2035 compared to 98% in 2023, while the federal budget deficit is expected to rise to nearly 9% of GDP due to higher debt servicing costs, increased social spending, and lower tax revenues.

Despite these concerns, losses in the U.S. dollar may be softened by easing global trade tensions. A preliminary deal between the U.S. and China includes plans to lower tariffs: Washington will reduce tariffs on Chinese goods from 145% to 30%, and Beijing will reduce its tariffs from 125% to 10%. Market sentiment is also supported by renewed optimism around a potential nuclear agreement between the U.S. and Iran and upcoming talks between U.S. President Donald Trump and Russian President Vladimir Putin aimed at de-escalating the conflict in Ukraine.

Meanwhile, the euro (EUR) shows signs of weakness amid growing expectations that the European Central Bank (ECB) will cut rates at its upcoming meeting. Traders are increasingly confident in this outlook as inflation in the eurozone aligns with the ECB’s 2% target and the region’s economic outlook remains weak amid persistent global uncertainty.

Recommendations: BUY 1.1200, SL 1.1130, TP 1.1290.