The euro against the dollar deepens its losses to record the lowest level in 6 months.

The euro-dollar currency pair sharply declined during trading on Monday, marking the second consecutive session, as the euro weakened in the wake of the strong rise of the dollar, pushing the pair to trade at its lowest level since April 23rd. The weakness of the euro-dollar pair came as a result of the increasing market expectations regarding a slowdown in the pace of the U.S. Federal Reserve's interest rate cuts in the upcoming meetings following Donald Trump's victory in the presidency, known for his expansionary policies and economic stimulus, which may lead to a resurgence of inflation. Consequently, the U.S. Federal Reserve may not rush to continue lowering interest rates for fear that inflation will rise again; as the Fed aims to reduce inflation to a sustainable target of 2% rather than temporarily. In contrast, it seems that the markets view the European Central Bank as continuing its cycle of interest rate cuts at a faster pace compared to the Fed, which enhances cash flows to take advantage of interest rate differentials between the eurozone and the United States. As a result, the euro-dollar pair sharply declined to record a level of 1.064 dollars, the lowest level for the currency pair in almost six months, marking a decrease of 0.64%.