Euro remains around 1.0960

The Euro (EUR) comes under some pressure against the US Dollar, motivating EUR/USD to trim part of the earlier uptick to new three-month peaks in the 1.0960-1.0965 band, a region unseen since mid August, where some initial resistance seems to have emerged so far.

On the other side of the coin, the Greenback, gauged by the USD Index (DXY), manages to bounce off recent lows in the 103.20 zone despite the so-far tepid bearish note in US yields across the curve.

The Dollar's pullback is fuelled by growing speculation about a potential Federal Reserve (Fed) interest rate cut in spring 2024, which remains underpinned by lower-than-expected inflation indicators (CPI and PPI) released last week.

On the European docket, European Central Bank’s (ECB) President Christine Lagarde will speak on “Inflation kills democracy” in Germany and investors will also take notes on the direction from the European central bank regarding interest rate moves

Across the ocean, the Chicago Fed National Activity Index eased to -0.49 in October. Later in the session, Existing Home Sales data are due followed by the FOMC Minutes of the November 1 meeting which will be one of the highlights of the month.