Investors are also awaiting the announcement of GDP data, which is scheduled for release on Thursday. The European GDP for Q3 is anticipated to show a growth rate of approximately 0.4% quarter-on-quarter.

However, this growth reflects the continued pressure on Europe from high interest rates and rapidly slowing demand. Additionally, the strengthening of the U.S. dollar has caused the euro to depreciate rapidly over the past week.

U.S. inflation for October was slightly higher than expected at 2.6%, with core inflation steady at 3.3% year-over-year. This has led investors to speculate that the Federal Reserve may not cut interest rates in December, further strengthening the U.S. dollar.

Source: Fxstreet