• The Euro extends losses for the fifth straight day as renewed Greenback demand dominates FX markets.
• Fed Chair Powell’s cautious stance boosts the US Dollar as markets scale back December rate-cut expectations.
• Focus shifts to the ADP Employment Change and ISM Services PMI in the US, as well as the HCOB Services PMI and September PPI in the Eurozone.

The Euro (EUR) weakens further against the US Dollar (USD) on Tuesday as renewed demand for the Greenback keeps pressure on the pair. At the time of writing, EUR/USD is trading around 1.1481, extending losses for the fifth consecutive day.

Meanwhile, the US Dollar Index (DXY), which tracks the Greenback's value against a basket of six major currencies, trades steadily around 100.20, touching a fresh three-month high.

The Euro’s decline seems largely driven by renewed demand for the Greenback, with little impetus from within the Eurozone. The lack of major economic releases has left the single currency at the mercy of broader US Dollar trends.

Across the Atlantic, traders are paring bets on another interest rate cut at the December meeting after Federal Reserve (Fed) Chair Jerome Powell said last week that a further reduction is “not a foregone conclusion” following the 25-basis-point (bps) interest cut. Powell added that “there’s a growing chorus” within the Committee supporting the idea of skipping a cut ahead.

The shift in expectations has been a key driver behind the recent US Dollar strength, as markets recalibrate for a potentially higher-for-longer policy stance. Still, diverging views among Fed officials on inflation persistence and signs of labor-market softness keep the monetary policy outlook uncertain.

Looking ahead, traders will closely watch the ADP Employment Change and ISM Services Purchasing Manager Index (PMI) reports due Wednesday for fresh cues on the US labor market and service-sector activity. With the ongoing government shutdown delaying official data releases, private-sector indicators have taken on added importance. The ADP report will likely offer early insight into hiring momentum and broader labor market trends. In the Eurozone, attention will turn to the HCOB Services PMI and September Producer Price Index (PPI).