David Song, Currency Analyst at DailyFX, Comments on the Euro and the European Central Bank

"The Euro pared the decline from the holiday trade to maintain the range-bound price action carried over from the end of March, but the single currency may struggle to hold its ground ahead of the European Central Bank interest rate decision on tap for later this week as growth and inflation falters. Indeed, unemployment in the euro-area is expected to hit a fresh record-high of 12.0% in March, while the headline reading for inflation is projected to slow to an annualized 1.6%, which would mark the slowest pace of growth since August 2010. As the fundamental outlook for the region turns increasingly bleak, the ECB remains poised to strike a dovish tone for monetary policy, and we may see a growing number of central bank officials show a greater willingness to push the benchmark interest rate to a fresh record-low as the recession threatens price stability."