Key events today:

14:00 UTC: USD – ISM Services PMI.

The EUR/USD pair started the week on a weak note, trading near the 1.1320 level during the Asian session on Monday. U.S. President Donald Trump confirmed that he would not seek the dismissal of Federal Reserve Chairman Jerome Powell before the end of his term in May 2026. Although Trump criticized Powell, calling him a “complete moron,” he reiterated that interest rates should eventually be lowered.

Additionally, the EUR/USD pair faces headwinds potentially caused by renewed trade tensions. Trump announced plans to instruct the U.S. Trade Representative and the Department of Commerce to begin the process of imposing 100% tariffs on foreign-made films.

On the data front, the U.S. non-farm payroll (NFP) report showed a stronger-than-expected job gain of 177,000 in April, following a revised increase of 185,000 in March. This exceeded the market forecast of 130,000. The unemployment rate remained unchanged at 4.2%, and average hourly earnings held steady at 3.8% year-over-year. Later today, traders will be watching the U.S. ISM Services PMI.

The euro found some support on Friday after stronger-than-expected inflation data from the Eurozone. The harmonized index of consumer prices (HICP) for April held steady at 2.2% year-over-year, slightly above the forecast of 2.1%. Services inflation accelerated to 3.9%, and core inflation (excluding food and energy) rose to 2.7%, above expectations. These figures reinforced market expectations of a cumulative 60 basis point rate cut by the European Central Bank (ECB) by year-end.

Recommendation: SELL 1.1320, SL 1.1340, TP 1.1230.