No significant events are expected today.

The EUR/USD pair is recovering from the previous session’s losses, trading around 1.0880 during Asian hours on Monday. The pair’s rise is due to the weakening of the U.S. dollar following weaker-than-expected U.S. nonfarm payroll (NFP) data for October. However, uncertainty surrounding the U.S. presidential election may encourage safe-haven flows, which could limit the pair’s growth.

On Friday, the U.S. Bureau of Labor Statistics (BLS) reported that October NFP increased by only 12,000, after a revised September increase of 223,000 (compared to 254,000), which is significantly below the market expectations of 113,000. Meanwhile, the October unemployment rate remained unchanged at 4.1%, matching consensus forecasts.

According to a final New York Times/Siena College poll cited by Reuters, Democratic candidate Kamala Harris and Republican candidate Donald Trump are in a close race in seven battleground states just two days before the U.S. presidential election.

The poll shows Vice President Kamala Harris with a slight lead in Nevada, North Carolina, and Wisconsin, while former President Donald Trump holds a slight advantage in Arizona. In Michigan, Georgia, and Pennsylvania, they are in a tight race. The poll, conducted from October 24 to November 2, found that all results in these states are within a margin of error of 3.5%.

The euro has gained support from stronger-than-expected economic growth in the third quarter and higher-than-expected inflation in the Eurozone, prompting traders to adjust their expectations for a larger-than-usual rate cut by the European Central Bank (ECB) in December. Markets have already fully priced in a 25-basis-point cut in the ECB deposit rate in December, which would be the fourth rate cut this year after reductions in October, September, and June.

Preliminary data showed that the Eurozone’s Harmonized Index of Consumer Prices rose to 2.0% year-on-year in October, higher than the previous figure of 1.7% and exceeding forecasts of 1.9%. Meanwhile, the annual core inflation rate remained unchanged at 2.7%. Additionally, Eurozone GDP grew by 0.4% in the third quarter compared to the previous quarter, double the growth seen in the second quarter and above expectations of 0.2%.

Recommendations: Monitor the 1.0900 level; if it holds above this level, consider Buy positions. In the case of a bounce, consider Sell positions.