EUR/USD extends downside below 1.0950 amid stronger US Dollar

• EUR/USD trades in negative territory for the fourth consecutive day around 1.0920 in Monday's Asian session. 
• The risk-off mood supports the US dollar broadly. 
• The dovish stance of the ECB weighs on the shared currency. 

The EUR/USD pair extends the decline to near 1.0920 during the early Asian session on Monday. The risk aversion amid the escalating geopolitical tensions in the Middle East and conflicts between China and Taiwan exert some selling pressure on the riskier currency like the Euro (EUR). 

On Monday, a spokesperson at the US Department of State said they are "seriously concerned by the People's Liberation Army (PLA) military drills in the Taiwan Strait and around Taiwan." They further stated that they will monitor PRC activities and coordinate with allies and partners regarding our shared concerns. Any signs of escalating tensions could boost the safe-haven flows, benefiting the Greenback and weighing on the major pair. 

Traders expect a 25 basis points (bps) rate cut from the Federal Reserve (Fed) in November after the US Producer Price Index (PPI)  on Friday. The CME FedWatch Tool showed the markets are now pricing in nearly an 86.8% chance of a 25 bps Fed rate cut, up from 83.3% before the PPI data. 

Across the pond, the Euro faces some pressure as the European Central Bank (ECB) is expected to cut interest rates further in both monetary policy meetings remaining this year. The ECB's dovish stance increased by a faster-than-expected decline in Eurozone inflationary pressures and 'fragile' economic recovery.