Important events today:

08:00 UTC: EUR – Composite PMI.

13:45 UTC: USD – Composite PMI.

The Euro-dollar pair remains steady around 1.1160 during Monday’s Asian session. The US Dollar (USD) may depreciate after the increased likelihood of further interest rate cuts by the Federal Reserve (Fed) in 2024, which could support the EUR/USD pair.

Last week, the US Federal Reserve lowered interest rates by a more significant-than-usual 50 basis points to a range of 4.75-5.00%. Policymakers also predicted another 75 basis points (bps) of rate cuts by the end of the year.

However, Fed Chair Jerome Powell stated in the post-meeting press conference that the Fed is not rushing to ease policy and emphasized that the half-percentage-point rate cut is not a “new pace.”

On Friday, Philadelphia Fed President Patrick Harker said that in recent years, the US central bank has effectively managed a challenging economic situation. Harker compared monetary policy to driving a bus, where balancing speed is key. He also highlighted that achieving maximum employment is not just about the number of jobs, but also their quality.

As for the euro, European Central Bank (ECB) President Christine Lagarde stressed in her speech on Friday that monetary policy must remain adaptable in an ever-changing world. While the core goals of monetary policy, particularly price stability, remain unchanged, central banks must maintain flexibility to respond to the challenges of a rapidly evolving global economy, reports Euronews.

Recommendations: Watch the 1.1150 level; if it breaks below, take Sell positions, and on a rebound, take Buy positions.