EUR/USD extends last week’s gains near 1.1130 as rising bets for Fed large rate cuts weigh on the US Dollar. Soft US PPI and deepening concerns over labor market outlook prompt Fed jumbo rate cut bets. *The European Central Bank cut interest rates by 25 basis points at its meeting last Thursday, as expected. *According to reliable trading platforms, currency volatility remained low. *Obviously, the euro managed to stabilize slightly against the pound sterling and the US dollar. *With the start of trading this week, the EUR/USD pair remained stable around and above the resistance of 1.1100, coinciding with the decline of the US dollar against other major currencies ahead of the US interest rate cut decision later this week. For this, no firm guidance was provided for the future by the European Central Bank, but it is widely assumed that further cuts will come towards the end of the year as economic forecasts point to weak growth and low inflation. Financial markets were relatively stable last Thursday after a volatile session on Wednesday following the release of US inflation. This sent stock markets soaring, with the S&P 500 initially falling by more than -1.5% only to reverse sharply and close 1% higher. Meanwhile, the US dollar rose slightly as the odds of a 50bp Fed cut next week fell to just 11%.