The euro rose in European trading on Monday against a basket of major currencies, extending its gains for a fourth consecutive session versus the U.S. dollar, supported by continued weakness in the greenback as investors awaited key Senate votes aimed at ending the longest government shutdown in U.S. history.

A slowdown in inflation across Europe during October eased price pressures on European Central Bank policymakers and revived expectations of an interest rate cut in December.

Price Overview

EUR/USD climbed 0.15% to $1.1579, up from the days opening level of $1.1562, after touching an intraday low of $1.1542.

The euro ended Fridays session up 0.15% against the dollar, marking its third straight daily gain amid a rebound from three-month lows.

On a weekly basis, the euro advanced 0.25% against the dollar its first weekly rise in three weeks as selling pressure on the European currency eased.

U.S. Dollar

The U.S. Dollar Index slipped 0.1% on Monday, extending losses for a fourth consecutive session and reflecting continued weakness in the greenback against both major and minor peers.

The decline came amid concerns that the Senate might fail to approve a preliminary deal to end the longest government shutdown in U.S. history, with additional votes expected later in the day.

European Interest Rates

Recent data showed that headline inflation in the eurozone slowed in October in line with expectations, while core inflation held steady reducing pressure on ECB policymakers.

Following the release, money markets priced in a higher probability of a 25-basis-point rate cut by the ECB in December, rising from 10% to 25%.

Investors now await further economic indicators from across Europe, as well as comments from ECB officials, to reassess the outlook for monetary policy.