EUR/USD holds 1.0800, though its outlook remains uncertain on ECB dovish bets.
The Eurozone's economic growth is expected to remain modest.
The US Dollar will be influenced by market expectations for US presidential elections.
EUR/USD struggles to extend Friday’s recovery above the immediate resistance of 1.0870 in Monday’s North American session. The major currency pair could retreat to its 11-week low near 1.0800 set on Thursday as investors expect the European Central Bank (ECB) to continue easing interest rates further.
With faltering Eurozone economic growth and the inflationary pressures below the bank’s target of 2%, investors expect the ECB to cut its borrowing rates again in December.
ECB policymaker and Estonian central bank Governor Madis Müller argued on Friday that the expectations of modest economic growth would probably tame price pressures further. The confidence of market participants for inflation remaining contained strengthened after the ECB’s own Survey of Professional Forecasters downwardly revised price growth to 1.9% for next year from 2% anticipated a quarter ago.
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