The EURUSD             pair is back on the offensive after a brief dip late last week. The price is trading around 1.1770 on Monday, but the recovery impetus looks limited due to some risk events due later this week. Besides, the euro’s upside potential is capped by a slight risk-off tone in the global markets.

On Wednesday, the FOMC will announce its two-day meeting results. As a rate hike is already priced in, investors will focus on the tone of the central bank’s statement and its dot plot. Should the Fed express confidence in further robust growth of the US economy and dismiss the risks from the escalating US-China trade war, the greenback will rise across the board.

The next day, the Italy’s government will present its budget proposals, and there is a risk that the plan will disappoint the markets. As such, in a negative scenario, EURUSD             could get quickly below the 1.17 threshold and challenge the 1.1650 area. And the potential risk aversion may increase the potential downside pressure on the single currency.