Euro Stable in Negative Area
EUR/USD remains stuck at lows, stuck between 1.1000 and 1.0900 despite broad investor risk appetite recovering after the US once again moved away from its own tariff policy. US President Donald Trump announced via social media that his administration would delay “reciprocal” tariffs for 90 days, albeit with the 10% across-the-board levy remaining in place for the time being. Global investors quickly found the buy button on the news, however, the euro’s brief rally to the 1.1100 level quickly evaporated, leaving the Fibre in familiar congestion territory.
The interest rate market has pulled back sharply from previous expectations for a rate cut, with interest rate swap traders now pricing in a further 75 basis points of rate cuts from the Federal Reserve (Fed) for the remainder of the year. While the interest rate market continues to bet on a quarter-point cut in June, analysts at JPMorgan warn that the Fed is likely to continue its wait-and-see phase due to tariff uncertainty, and will likely do so at least through September.
Consumer Price Index (CPI) inflation data is due on Thursday, while Producer Price Index (PPI) inflation and the University of Michigan (UoM) Consumer Sentiment Index results are due on Friday. These will represent a significant set of US inflation and sentiment figures from the ‘pre-tariff’ period of 2025, serving as important benchmarks for the rest of the year.
Source: FXStreet
