Reuters reported that the European Central Bank (ECB) is set to raise interest rates by 50 basis points in both February and March and will continue to raise rates in the months after, ECB governing council member Klaas Knot said in an interview with Dutch broadcaster WNL on Sunday.

"Expect us to raise rates by 0.5% in February and March and expect us to not be done by then and that more steps will follow in May and June," Knot said.

EUR/USD update

(Bearish schematic could be playing out)

The Euro is in the barroom brawl, chopping around support and resistance. If the bulls commit, then the 1.0870/90s and potentially the 1.09 psychological level could be attractive to the bears who are in anticipation of a premium for the opening sessions of the week. 

There are red news events scheduled on both the Europen and US calendar so traders might be reluctant to get too heavily positioned leading up to those considering the Federal Reserve meeting at the start of February.