Anna 
In Tuesday’s European session, the EUR/USD pair slipped slightly below the significant resistance level of 1.0800 as investors await crucial economic releases, including the United States Consumer Price Index (CPI) for April and Eurozone’s preliminary Q1 Gross Domestic Product (GDP) data scheduled for Wednesday.
The upcoming US consumer inflation data holds substantial importance as it will heavily influence speculation regarding potential rate cuts by the Federal Reserve (Fed), expected to commence from the September meeting. The first-quarter US CPI remained higher than expected, driven by tight labor market conditions and robust household spending. Consequently, investors are closely monitoring this data, as sustained high inflation readings could prompt traders to scale back expectations for Fed rate cuts in September. Moreover, strong inflation figures could dampen the optimism surrounding Fed rate cuts, which has been bolstered by easing labor market conditions.
The EUR/USD pair’s retreat below the 1.0800 resistance level underscores market caution and anticipation ahead of these pivotal economic data releases. Traders are preparing for potential volatility in the currency pair based on the outcomes of the CPI report and Eurozone GDP figures, which will likely influence near-term sentiment and market expectations regarding monetary policy decisions.
