EUR/USD trades weakly near 1.1850 as Warsh’s nomination boosts USD’s appeal

The EUR/USD pair holds onto Friday’s losses near 1.1850 during the late Asian trading session on Monday. The major currency pair faces selling pressure as the US Dollar (USD) trades firmly, following the nomination of former Federal Reserve (Fed) Governor Kevin Warsh as the successor of current Chairman Jerome Powell.

During the press time, the US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, clings to gains near the weekly high of 97.33.

There has been a significant positive impact of Warsh’s appointment as the Fed’s new Chairman on the US Dollar, given his historical preference for a strong US Dollar.

This week, the US Dollar is expected to trade highly volatile as a string of employment-related and ISM Purchasing Managers’ Index (PMI) data are due for release, notably the Nonfarm Payrolls (NFP) data, which is scheduled for Friday.

Meanwhile, the major trigger for the Euro (EUR) will be the preliminary Eurozone Harmonized Index of Consumer Prices (HICP) data for January, which will be published on Wednesday. The headline HICP is expected to come in lower at 1.7% on an annualized basis from the prior release of 1.9%. Signs of price pressures cooling down would boost expectations of an interest rate cut by the European Central Bank (ECB) in the near term.