No significant events expected today.

The Euro-Dollar pair trades on a stronger note around 1.0665 during the early Asian session on Monday. However, the pair’s rise could be limited due to comments from Federal Reserve officials suggesting a shift to a tighter stance. On Tuesday, investors will look out for the preliminary Eurozone HCOB PMI for April, and on Friday, the final Personal Consumption Expenditures (PCE) Price Index for the US for March will be released.

The European Central Bank (ECB) is expected to keep rates unchanged at its June meeting. The ECB has indicated that markets should expect rate cuts soon unless there is a significant shock. Meanwhile, François Villeroy de Galhau, Governor of the Bank of France, stated that the ECB should cut rates in June to prevent rate hikes from doing too much damage to the Eurozone economy. Joachim Nagel, President of the Bundesbank, noted that “the likelihood of a June rate cut is increasing,” adding that there are caveats, including the risk of rising oil prices.

Recommendations: Predominantly trade on Buy from current price levels.