Ella 
EUR/USD retreats towards the 1.0520 area on USD buying.
The U.S. Dollar Index (DXY) reverses recent weakness to test 106.30.
EUR/USD fell to the 1.0530 area after rising for three consecutive sessions.
In contrast, the U.S. Dollar Index (DXY) shows that the greenback is regaining ground and moving back towards the 106.30 area amid the risk aversion that prevailed in global markets at the start of the week.
On the monetary policy front, investors currently expect the Federal Reserve (Fed) to keep interest rates at current levels for the remainder of the year. Meanwhile, speculation continues that the European Central Bank (ECB) may pause policy adjustments even though inflation has exceeded the bank’s target, and concerns about a future recession or stagflation in the European region are growing.
Domestically, German industrial production shrank by 0.2% monthly in August.
In the United States, the market is closed for the Columbus Day holiday, and investors are expected to pay attention to Dallas Fed Lorie Logan (voter, hawk), FOMC Governor Michael Barr (permanent voter, centrist) and FOMC Governor Philip -Speech by Philip Jefferson (permanent voter, centrist).
