Ella 
In early Asian trading on Monday, EUR/USD strengthened to around 1.0875. EUR/USD gained on the back of a weaker US dollar. Fed officials Bostic, Barr, Waller, Jefferson and Mester will speak on Monday. The key data for the Eurozone is Thursday’s preliminary PMI reading for May.
U.S. inflationary pressures eased in April, but that development is unlikely to prompt the Federal Reserve to cut interest rates anytime soon. Federal Reserve Chairman Jerome Powell said he believes the central bank needs more data before it can be confident that inflation is steadily falling to 2%. In addition, several Fed officials emphasized their cautious stance of maintaining higher interest rates for a longer period of time.
Last week, Atlanta Fed President Raphael Bostic said he was seeing signs of cooling in recent inflation data, but he preferred to look at May and June data. Cleveland Fed President Loretta Mester said policy is well positioned and it is too early to say progress in combating inflation has stalled. Richmond Fed President Tom Barkin said the Fed needs to keep borrowing costs higher for longer to keep inflation on track to achieve its target. The Fed’s reduction in bets on interest rate cuts could boost the U.S. dollar and be bearish for the EUR/USD pair.
