No significant events are expected today.

The Euro-Dollar pair is holding around the 1.0790 mark during Asian trading hours on Monday following losses in the previous session. However, the pair may face resistance from a stronger U.S. Dollar (USD), as recent favorable U.S. economic data has heightened expectations of a less dovish approach by the Federal Reserve (Fed) in November.

On Friday, data showed that the U.S. Michigan Consumer Sentiment Index rose to 70.5 in October from 68.9 previously, exceeding the forecast of 69.0. Additionally, orders for durable goods in September fell by 0.8% month-over-month, less than the expected decrease of 1.0%.

Moreover, the increased uncertainty surrounding the Middle Eastern conflict could boost the appeal of the U.S. Dollar (USD) as a “safe-haven currency.” Israel’s targeted strike on Iran early Saturday, coordinated with Washington and limited to missile and air defense facilities, was more restrained than many had anticipated.

The U.S. Dollar is also supported by uncertainty around the upcoming U.S. presidential election. Allies of former President Donald Trump – Republicans – recently suffered at least 10 legal setbacks in battleground states that could influence the outcome of the November 5 election.

European Central Bank (ECB) Governing Council member Klaas Knot emphasized on Saturday the importance of “keeping all options open” to manage potential risks to growth and inflation. “Maintaining full flexibility will serve as a safeguard against materialization of risks in either direction for the growth and inflation outlook,” Knot noted, adding, “We believe that our data-dependent and meeting-by-meeting approach has served us well,” reports Reuters.

Recommendations: Trading mainly with Sell orders from the current price levels.