EUR/USD weakened for the second consecutive trading day, trading around 1.1360 in Asian trading on Monday. EUR/USD came under pressure due to a stronger dollar, and signs of easing tensions between the U.S. and China also weighed on market sentiment.

On Friday, China exempted certain U.S. imports from 125% tariffs, according to business sources. The move has fueled hopes that the long-running trade war between the world's two largest economies may be coming to an end.

U.S. Agriculture Secretary Brooke Rollins said on Sunday that the Trump administration is in daily discussions with China about tariffs, Reuters reported. Rawlings stressed that negotiations are still ongoing and trade deals with other countries are "very close."

Despite those comments, Reuters quoted a Chinese embassy spokesman on Friday as firmly denying any current negotiations with the United States, saying there were no consultations or talks on tariffs between China and the United States. "The spokesman called on Washington to "stop creating chaos." In addition, an official in Beijing reiterated on Thursday that there are currently no "economic and trade negotiations" underway, and stressed that the United States must "completely eliminate all unilateral tariff measures" to pave the way for negotiations.

Meanwhile, dovish expectations surrounding the European Central Bank (ECB) are intensifying as concerns grow that euro zone inflation could fall below the ECB's 2% target. Last Thursday, ECB policymaker Olli Rehn, governor of the Bank of Finland, warned of downside risks to inflation, noting that "under the current circumstances, medium-term inflation forecasts are likely to fall below the 2% target."