No major events expected today.

The Euro-Dollar pair is trading on a stronger note around 1.0880 on Monday during the early hours of Asian trading. The rise of the main pair is facilitated by a weakening of the US dollar. Monday is scheduled for speeches by Federal Reserve (Fed) officials Bostic, Barr, Waller, Jefferson, and Mester. The main event in the Eurozone will be the preliminary PMI index for May on Thursday.

Inflationary pressure in April eased, but this progress is unlikely to prompt the Fed to lower interest rates any time soon. Fed Chair Jerome Powell stated that he believes the US central bank needs more data to be confident that inflation is steadily decreasing to the 2% level. Additionally, several Fed officials have emphasized their cautious stance regarding keeping rates higher for longer.

Last week, Atlanta Fed President Raphael Bostic noted signs of cooling inflation in the recent CPI report but prefers to watch data for May and June to ensure that inflation does not turn the other way. Cleveland Fed President Loretta Mester said that policy is in a good position and it’s premature to say that progress on inflation has stalled. Richmond Fed President Tom Barkin noted that the central bank needs to keep borrowing costs high for a longer period to ensure reaching the inflation target.

Recommendations: Predominantly buy trades from the current price level.