No significant events are expected today.

The euro is supported by improved market sentiment linked to the possibility of ending the war between Ukraine and Russia. News of a potential meeting between Trump and Putin next week has led some to anticipate an agreement that could end the military actions in Ukraine.

The EUR/USD pair is also strengthening as the US dollar (USD) struggles following weaker US economic data, prompting traders to price in the possibility of further interest rate cuts this year. Markets are currently pricing in about an 89% chance of a Fed rate cut at the September meeting and an additional 58 basis points of cuts by the end of the year.

Fed Governor Michelle Bowman said on Saturday that three rate cuts this year are likely to be appropriate. Bowman added that the clear weakening of the labor market outweighs the risks of future inflation growth.

Traders are likely to watch the upcoming US consumer inflation data to be released on Tuesday, followed by the UK’s preliminary Q2 GDP data and US Producer Price Index (PPI) figures on Thursday.

Recommendations: BUY 1.1700, SL 1.1630, TP 1.1770.