Ella 
EUR/USD edged higher amid mixed market conditions, reacting to changes in U.S. Treasury yields.
The European Central Bank and the Federal Reserve are expected to cut interest rates in June, adding to currency volatility, with both the euro and the dollar in focus.
European Central Bank policymakers signaled caution about cutting interest rates and emphasized their inflation target ahead of key decisions.
EUR/USD rose a solid 0.19% on Wednesday amid high U.S. bond yields and a weaker dollar. Due to lackluster U.S. economic data, traders turned to euro zone economic data and speeches from the European Central Bank (ECB) spokesman. As of press time, EUR/USD was trading at 1.0948, rising 0.01% after the opening of the Asian market on Thursday.
Market sentiment is unclear, while the macroeconomic outlook involving the Eurozone (EU) bloc and the United States remains unchanged. The European Central Bank (ECB) and the Federal Reserve (Fed) are expected to lower borrowing costs in June, which could weaken the euro and dollar.
During the session, U.S. Treasury yields limited the gains in EUR/USD, with the 10-year U.S. Treasury yield rising nearly 4 basis points to 4.19%. The probability of the Fed cutting interest rates by 25 basis points has dropped to 65% from about 72%, according to the FedWatch tool.
European Central Bank policymaker Villeroy suggested a possible rate cut in the critical spring period, adding that a government committee would monitor inflation until it reaches its 2% target. Colleague Kazak also agreed with some of his remarks, adding that a decision on rate cuts will be made at the upcoming meeting.
