Ella 
EUR/USD fluctuated lower on Monday, hovering around 1.0720, after remaining in a narrow range but at the upper edge of the range, awaiting the release of the U.S. Federal Reserve (Fed) decision on Wednesday. Investors generally expect U.S. interest rates to remain steady this week, but traders will seek guidance on when the Federal Reserve will cut rates. As of press time, the CME FedWatch Tool showed that interest rate markets were pricing in a 58% probability of a first rate cut in September.
Germany’s consumer price index rose to a monthly rate of 0.5% in April, up from 0.4% in the previous month but below expectations of 0.6%. Germany’s Harmonized Consumer Price Index rose to an annual rate of 2.4%, compared with a forecast of 2.3%. Markets will look forward to Tuesday’s pan-eurozone Harmonized Consumer Price Index, which predicts inflation for the full year to April will remain at 2.4%.
European gross domestic product (GDP) data will also be released during the European session on Tuesday, with GDP expected to fall to 0.1% in the first quarter from 0.0% in the previous quarter.
The main headlines this week will be the Federal Reserve’s latest interest rate decision on Wednesday, followed by Friday’s non-farm labor force data, which is expected to slow slightly from last month’s 12-month peak of 303,000. Friday’s U.S. nonfarm payrolls are expected to slow to a net gain of 243,000 jobs.
