The EUR/USD pair is entrenched near its weekly lows.

On Monday, the most widely traded currency pair shows neutrality. The current EUR/USD exchange rate is recorded at 1.0889.

The US dollar retains favor within the currency market, bolstered by both investor global risk aversion and insights gleaned from the minutes of the most recent Federal Reserve meeting.

Signals from China present a mixed picture, with many still causing concern among investors. The wait continues for significant decisions regarding economic stimulus, but as of now, no such measures have been unveiled.

The US Federal Reserve will convene on September 19th and 20th to determine interest rates. According to the CME FedWatch monitor, the market anticipates that interest rates will remain unchanged within the target range of 5.25-5.50% per annum, with an 89% probability. However, 11% of market participants foresee a 25-basis point increase in borrowing costs. Looking ahead to the November 1st meeting, the percentage of pessimists betting on an increase has already reached 33%.

The news flow reinforces the rationale for continuing the trend towards monetary tightening in the US, given factors such as the increase in core inflation, the producer price index, and retail sales. While consumers are adjusting to elevated prices, the Fed, in its resolute stance against inflation, is unlikely to tolerate the situation.

With no significant statistics on the macroeconomic calendar today, the primary currency pair will continue to hone in on pre-existing factors.

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