The EUR/USD pair remains subdued around the 1.1850 level during late Asian trading on Monday, extending the losses recorded at the end of last week. The pair continues to face downside pressure as the US Dollar (USD) holds firm following the nomination of former Federal Reserve Governor Kevin Warsh as the next Chair, succeeding Jerome Powell.
At the time of writing, the US Dollar Index (DXY), which measures the Greenback against a basket of six major currencies, is hovering near its weekly high around 97.33.
The announcement has strengthened the US Dollar, as Warsh is widely known for favoring a strong-dollar policy stance during his tenure at the Federal Reserve.
Looking ahead, the USD is likely to experience heightened volatility this week, with several key US economic releases scheduled, including labor-market indicators and ISM Purchasing Managers’ Index (PMI) data. Market attention will be particularly focused on the Nonfarm Payrolls (NFP) report due on Friday.
On the Euro side, traders will closely watch the preliminary Eurozone Harmonized Index of Consumer Prices (HICP) for January, set for release on Wednesday. Annual headline inflation is expected to ease to 1.7% from the previous reading of 1.9%. Any further signs of cooling price pressures could strengthen expectations of a near-term interest rate cut by the European Central Bank (ECB).
