No significant events are expected today.

The Euro-Dollar pair continues to face downward pressure for a second consecutive session, hovering around 1.0720 during Asian trading hours on Monday. The pair is pressured by the strengthening of the U.S. dollar (USD) and political uncertainty in Germany.

Investors anticipate a less accommodative stance from the Federal Reserve, as Donald Trump is likely to fulfill his campaign promises to introduce substantial tariffs, including a 10% increase on imports and a reduction in corporate taxes.

Analysts believe that if Trump’s fiscal policies are implemented, they could lead to increased investment, spending, and labor demand, raising inflationary risks. This may prompt the Fed to adopt a more stringent monetary policy, potentially strengthening the U.S. dollar and exerting additional pressure on the EUR/USD pair.

However, Federal Reserve Chairman Jerome Powell stated on Thursday that he does not expect Trump’s potential return to the White House to impact the Fed’s policy decisions in the near term. “We do not guess, speculate, or assume what future government decisions will be,” Powell remarked after the bank’s decision to cut interest rates by 25 basis points to a range of 4.50%-4.75%, as expected.

On Friday, the preliminary Michigan University Consumer Sentiment Index rose to 73.0 in November, up from 70.5 in October, exceeding market expectations of 71.0. This favorable data has broadly strengthened the U.S. dollar.

Recommendation: Primarily trade with Sell orders from the current price level.