The euro declined against the U.S. dollar to start the week, with Euro futures trading back below the 1.18 level for the first time in several sessions. This move follows a period of strength where the euro rallied north of 1.20, reaching levels not seen since June 2021. The reversal was catalyzed by a more hawkish tone from the January FOMC meeting and the nomination of former Fed Governor Warsh as the next fed chair, which supported a rally in the U.S. dollar. While the upcoming ECB policy meeting is expected to result in no change to current policy, market attention remains on the shifting interest rate differentials. Volatility, as tracked by the CVOL Index, has begun to retreat as prices move away from recent highs. Market participants are now awaiting the upcoming CFTC report to see if speculators maintained the net long positions they established prior to the recent price reversal.