EUR/USD holds positive ground near 1.0900 amid weaker US Dollar

• EUR/USD edges higher to 1.0895 in Monday’s early Asian session, up 0.12% on the day. 
• Fed’s Williams said the US central bank was "getting us closer to a disinflationary trend that it’s looking for.
• The ECB left interest rates unchanged last week and gave no hints about rate cuts at its next meeting. 

The EUR/USD pair gains ground near 1.0895 during the early Asian session on Monday. The decline of the US Dollar (USD) provides some support for the major pair. The German Retail Sales for May are due later in the day, followed by the US Chicago Fed National Activity Index for June. 

The rising bets on the Federal Reserve (Fed) rate cut in September and the fragility of the US labor market exert some selling pressure on the Greenback. According to the CME FedWatch Tool, financial markets are now pricing in the probability of a move at its July meeting less than 5%, and pricing in a nearly full rate cut is firmly expected in September. New York Federal Reserve President John Williams said on Friday that an interest rate cut could be warranted in the coming months, but not at its July policy meeting. 

On the Euro front, the European Central Bank (ECB) policy decision came as expected, with no change in the interest rates. The ECB President Christine Lagarde refrained from committing to a pre-defined rate-cut path. Lagarde said that while Eurozone inflation was on a “disinflationary track,"  the ECB would still need to keep rates high. The markets have priced in the odds for a September rate cut at 65%, down from 73% immediately before the decision. The data dependency approach from the ECB is likely to underpin the shared currency in the near term.