Ella 
EUR/USD started the new week on a positive note during early Asian trading on Monday. Gains among major currency pairs were supported by a weaker U.S. dollar. Investors will be closely watching the European Central Bank’s (ECB) monetary policy meeting on Thursday, with no change in interest rates expected. As of press time, EUR/USD was trading at 1.0845, up 0.07% on the day.
Several Federal Reserve (Fed) policymakers have said the timing of a rate cut will depend on upcoming economic data. Boston Fed President Susan Collins and New York Fed President John Williams said the first rate cut could come later this year, while Atlanta Fed President Raphael Bostic Bostic said he expected policy easing this summer.
Data from the Institute for Supply Management (ISM) showed that the U.S. manufacturing purchasing managers index (PMI) fell to 47.8 in February from the previous value of 49.1, which was lower than the market consensus. The new orders index fell into contractionary territory at 49.2, the production index was at 48.4 and the employment index was at 45.9.
The ECB wants to see more data on easing wage pressures before considering its stance on monetary policy. The European Central Bank is likely to keep rates on hold at its March meeting. Investors will get more clues about the policy outlook from the press conference. Hawkish comments from the central bank could boost the euro (EUR) and be bearish for the EUR/USD pair.
