The EUR/USD pair trades in negative territory for the fifth consecutive day around 1.0215 during the early Asian session on Monday.
EUR/USD loses traction to near 1.0215 in Monday’s early European session, down 0.30% on the day. The US labor market data boost the USD and act as a headwind for the pair. The ECB's dovish bets contribute to the EUR’s downside. The US Dollar gathered strength on the upbeat US employment data for December, which is likely to support the US Federal Reserve's stance to keep interest rates steady in January.
The ECB sets interest rates and manages monetary policy. The ECB’s primary mandate is to maintain price stability, which means either controlling inflation or stimulating growth. Its primary tool is the raising or lowering of interest rates. Relatively high interest rates – or the expectation of higher rates – will usually benefit the Euro and vice versa. The ECB Governing Council makes monetary policy decisions at meetings held eight times a year.
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