Anna 
In European trading, the EUR/USD pair fell by 0.1%, settling at 1.0860. This decline comes after the pair reached a high of 1.0895 following the release of U.S. inflation data. Despite this dip, the euro remains up approximately 0.9% against the dollar for the week.
The market is now focused on the upcoming final reading of the eurozone Consumer Price Index (CPI), expected to show an annual inflation increase of 2.4% for April.
Anticipation is building around the European Central Bank’s (ECB) likely decision to cut interest rates in June. However, uncertainty persists regarding the number of additional cuts the ECB may implement throughout the remainder of the year. Currently, traders have factored in a total of 70 basis points in ECB rate cuts for the year, significantly higher than the just under 50 basis points of easing anticipated for the Federal Reserve.
Elsewhere, the GBP/USD pair also experienced a slight decline of 0.1%, dropping to 1.2658. Despite this, the pound is still positioned for a weekly gain of around 1%.
The Bank of England is also expected to lower interest rates from their 16-year high this summer. However, market volatility is anticipated to remain subdued until the release of critical U.K. inflation data next week.
