Anna 
The EUR/USD pair is extending its rebound from the prior session, showing positive momentum during the early European session on Thursday. The pair recovered from levels below 1.0800, marking a one-week low. However, traders are exercising caution and may stay on the sidelines as they await crucial inflation reports from Germany, France, Spain, and the United States. Additionally, the flash Eurozone Consumer Price Index (CPI) is scheduled for release on Friday, contributing to the wait-and-see approach.
The Euro is receiving support from reduced expectations of swift interest rate cuts by the European Central Bank (ECB), acting as a positive factor for the currency. Simultaneously, a modest decline in the US Dollar (USD) is aiding the EUR/USD pair. Nevertheless, substantial downward pressure on the Greenback appears limited amid speculation that persistent inflation and the resilience of the US economy may prompt the Federal Reserve (Fed) to maintain higher interest rates for an extended period.
While the Euro benefits from these factors, any further upside could be restrained by a softer risk tone that enhances the USD’s safe-haven appeal. Traders are advised to approach fresh directional bets with caution, considering the dynamic market conditions.
