No major economic events are expected today.

The Euro starts the week under pressure from events in France, where protests against the high cost of living were accompanied by violence. A key risk for the currency is a renewed deterioration of confidence in French debt. If investors demand a higher risk premium, borrowing costs will rise, complicating budgetary decisions and eroding the attractiveness of Eurozone assets.

Christine Lagarde noted on Saturday that higher borrowing costs will weigh on economic growth and limit the pass-through of energy costs into consumer prices. This restrains the argument for rapid ECB tightening. Meanwhile, Joachim Nagel leaves room for additional anti-inflation measures: interest rate support for the Euro remains intact, though future decisions are not predetermined.

Declining US bond yields are preventing broad-based Dollar strength and limiting the scope of the move. However, French uncertainty creates an independent downside risk specifically for the Euro. A easing of tensions or hawkish signals from the ECB could shift this outlook. In the absence of such catalysts, this local European factor keeps the bearish scenario for EUR/USD as the main priority.

Recommendations: SELL 1.1230, SL 1.1255, TP 1.1180.