• EUR/USD faces pressure after rebounding to near 1.0500 as the US Dollar bounces back.
• The US Dollar rebounds as investors digest Trump’s pick of Scott Bessent as Treasury Secretary.
• ECB Lane warned that US tariffs could lead to a big disruption in the Eurozone.

EUR/USD faces selling pressure near the psychological resistance of 1.0500 in Monday’s European session after a solid opening that lost some steam as the US Dollar (USD) attempts to rebound. The US Dollar Index (DXY), which gauges the Greenback’s value against six major currencies, broadly consolidates at around 107.00 as investors digest the selection of fund manager Scott Bessent for the role of Treasury Secretary by President-elect Donald Trump.

The Greenback fell sharply early in the Asian session, as did 10-year US Treasury yields, in a warm welcome by bond markets given Bessent’s old relation with Wall Street. Still, this initial reaction appears to be short-lived as the US Dollar swings between mild gains and losses.

In an interview with the Wall Street Journal (WSJ) after his nomination for Treasury Secretary over the weekend, Bessent said that he will focus on enacting tariffs, eliminating tax cuts on social security benefits and overtime wages, and maintaining the US Dollar’s status as the world's reserve currency.