The euro jumps to a two-week high ahead of European inflation data.

The US dollar deepens its losses in the foreign exchange market.

The market is awaiting strong clues about the path of European interest rates.

The euro jumped in European trading on Monday to its highest level in two weeks against the US dollar, benefiting from the continued decline in the US currency, which has been affected by the possibility that the Federal Reserve will cut interest rates this December.

Amid continued doubts about the likelihood of a European interest rate cut in December, investors are awaiting the release of key European inflation data for November on Tuesday, with the aim of obtaining more strong evidence about the European Central Bank's monetary policy easing path.

Price overview

Euro exchange rate today: The euro rose against the dollar by about 0.2% to ($1.1616), its highest level since November 17, from today's opening price of ($1.1596), and recorded a low of ($1.1589).

The euro ended Friday's trading session virtually unchanged against the dollar, for the second day in a row.

The euro gained 0.5% against the dollar during November, its third monthly gain in the last four months, due to the European Central Bank's hawkish stance.

US dollar

The dollar index fell by about 0.2% on Monday, deepening its losses for the sixth consecutive session and hitting a two-week low, reflecting the continued decline in the value of the US currency against a basket of global currencies.

A series of weak economic data and cautious monetary comments in the United States have increased the likelihood of a US interest rate cut this December, pending further US labor market data this week.

According to the CME Group's FedWatch tool: the probability of a 25 basis point US interest rate cut at the December meeting is currently stable at 87%, and the probability of keeping interest rates unchanged is stable at 13%.

European interest rate

The money market's pricing of the likelihood of the European Central Bank cutting European interest rates by about 25 basis points in December is currently stable around 25%.

In order to reprice the above probabilities, investors are awaiting the release of key inflation data in Europe on Tuesday, which will provide strong clues about the future course of monetary policy in the Eurozone.