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\n Share:<\/span><\/p>\n EUR\/USD<\/a> initiates the week by extending its gains, trading at higher levels around 1.0670 during the Asian session on Monday. The pair is receiving upward support, likely a result of the downbeat consumer sentiment data from the United States (US) released on Friday.<\/p>\n The preliminary US Michigan Consumer Sentiment Index recorded a reading of 67.7, indicating a decline from the previous figure of 69.5. This reading also fell below the expected figure of 69.1 for the month of September.<\/p>\n US Dollar Index (DXY), which measures the performance of the Greenback against six other major currencies, finished its ninth week with a gain of 0.26%. However, the spot price is trading lower around 105.30. Additionally, US Treasury yields have completely retraced the intraday gains, which is putting pressure on the buck. The yield on the US 10-year bond fell to 4.32% at the time of writing.<\/p>\n Over the past week, key economic data from the US has consistently showcased robust economic conditions. These strong economic indicators<\/a> reinforce the likelihood of the US Federal Reserve’s (Fed) intention to pursue another interest rate hike by the end of 2023.<\/p>\n The Consumer Price Index (CPI), a metric for tracking inflation, surpassed predictions. Furthermore, Retail Sales for the same month and Jobless Claims for the second week of September both unveiled positive results, indicating a favorable economic outlook<\/a> for the United States.<\/p>\n Market participants will closely monitor the Fed\u2019s interest rate decisions scheduled for Wednesday. Fed is expected to keep interest rates unchanged. Additionally, market participants will pay attention to the central bank’s communications, hoping to glean any hints or insights into the potential future direction of interest rates.<\/p>\n On the other side, the European Central Bank\u2019s (ECB) President Christine Lagarde<\/a>, conveyed on Friday that policymakers did not contemplate the possibility of further rate cuts. Lagarde also indicated that the ECB’s intention was to keep interest rates<\/a> at elevated levels for an extended period and was prepared to raise them if deemed necessary.<\/p>\n\n