The euro is moving into negative territory due to European interest rates.

The US dollar rises against a basket of global currencies.

The market is awaiting strong clues about the direction of monetary policy.

The euro fell in European markets on Monday against a basket of global currencies, extending its losses for the fifth consecutive day against the US dollar, as investors focused on buying the US currency following a decline in the likelihood of the Federal Reserve cutting US interest rates in the near term.

With inflationary pressures easing on European Central Bank policymakers, the prospect of at least one European interest rate cut this year has revived, and in order to reprice those prospects, markets are waiting for more economic data from the Eurozone.

Price overview

Euro exchange rate today: The euro fell against the dollar by more than 0.1% to ($1.1859), from today’s opening price of ($1.1873), and recorded a high of ($1.1875).

The euro ended Friday's trading down less than 0.1% against the dollar, its fourth consecutive daily loss.

US dollar

The dollar index rose more than 0.1% on Monday, reflecting the rise in the US currency against a basket of major and minor currencies.

Strong data released last week on the US labor market has reduced the likelihood of the Federal Reserve cutting US interest rates next March.

According to the CME Group's FedWatch tool: the probability of US interest rates remaining unchanged at the March meeting is currently priced at 90%, and the probability of a 25 basis point rate cut is priced at 10%.

European interest rate

Recent data released in Europe showed that key inflation levels slowed during December, indicating a decline in inflationary pressures on the European Central Bank.

Following that data, the money market's pricing of the likelihood of the European Central Bank cutting European interest rates by about 25 basis points next February rose from 10% to 25%.

Traders have revised their expectations from the European Central Bank keeping interest rates steady throughout this year to at least one cut of around 25 basis points.

In order to reprice the above probabilities, investors are awaiting further economic data from the Eurozone on inflation, unemployment and wage levels.