Analysts at OCBC Bank analyze the prospects of this currency pair:

    It is necessary to monitor what President Christine Lagarde will do at the upcoming ECB meeting to be able to agree on a timeline for cutting interest rates in the summer. A tougher response from the ECB could curb market expectations of a strong interest rate cut and this could support the EUR.

    However, preliminary PMI figures ahead of Wednesday will also be of interest as signs of improvement in the economy will also continue to support the currency's strength.