No significant events are expected today.

The Euro-Dollar pair starts the week with continued growth, trading around 1.0520 during the Asian session on Monday. This rise could be attributed to the weakening of the US Dollar (USD) amid declining US Treasury yields ahead of the Federal Reserve’s (Fed) interest rate decision scheduled for Wednesday.

The Fed is widely expected to announce a 25 basis point rate cut during its final monetary policy meeting of 2024. Market analysts predict that the US central bank will lower rates while signaling a pause, considering the strong US economy and inflation stuck above 2%. According to the CME FedWatch Tool, markets have nearly fully priced in the possibility of a quarter-point rate cut at the Fed’s December meeting.

Additionally, attention will focus on Fed Chair Jerome Powell’s press conference and the dot plot projections. Earlier this month, Powell adopted a cautious tone, stating, “We can afford to be a bit more careful as we try to find a neutral position.” He emphasized that there is no rush to lower rates.

The Euro received support after French President Emmanuel Macron appointed centrist ally François Bayrou as France’s Prime Minister, boosting hopes for political stability. Macron pledged to swiftly select a new candidate for the role after Michel Barnier was forced to resign following a parliamentary confidence vote.

Recommendations: Monitor the 1.0500 level. If the pair consolidates below, consider Sell positions; if it rebounds, consider Buy positions.