President Trump returned to the White House on Monday after a three-night hospital stay following treatment for Covid-19.
Later in the day, the Fed's Chairman Powell is among many Fed officials scheduled to give a keynote speech on the economic outlook this week. His speeches are usually followed by elevated volatility, especially in the stock market.
Additionally, ECB President Christine Lagarde is due to participate in a virtual panel discussion at an event celebrating the 10th anniversary of the European Stability Mechanism. Her speech might bring some increased volatility to the EURUSD pair, especially if she talks about monetary policy.
Moreover, markets are really excited as chances for a new massive fiscal stimulus are increasing each day. US House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin spoke by phone for about an hour on Monday. They are also expected to talk today, possibly hammering out the new fiscal stimulus's last details.
As more stimulus is incoming and the mood in the markets improved, the greenback lost ground, and the EURUSD pair is back at 1.18. Cable managed to get back to 1.30.