Anna 
The euro (EUR) saw minimal movement on Wednesday as it neared a critical support level around 1.08000 against the US dollar (USD).
Market sentiment continues to anticipate a more dovish monetary policy stance from the European Central Bank (ECB) compared to the Federal Reserve (Fed) throughout 2024. This fundamental outlook maintains bearish pressure on the EUR/USD pair. However, interest rate expectations for both central banks are subject to daily shifts as new economic data emerges.
Yesterday, comments from Fed Governor Christopher Waller suggested that persistently high US inflation might delay potential interest rate cuts in the near term, conveying a hawkish tone that weighed on EUR/USD. Conversely, higher-than-expected inflation figures reported by Spain provided some respite for the euro.
In the medium term, EUR/USD is expected to continue moving within a narrow range with a slight bearish bias, oscillating between 1.07000 and 1.09000.
During the Asian and early European trading sessions, EUR/USD remained relatively flat. The US is scheduled to release two key reports at 12:30 p.m. UTC: Gross Domestic Product (GDP) and Jobless Claims. While GDP figures for the previous quarter may attract less attention, jobless claims data is likely to have a more significant impact on market sentiment.
Better-than-expected jobless claims figures could signal a slowdown in the US labor market, potentially increasing the likelihood of a Fed rate cut in June and providing bullish momentum for EUR/USD. Conversely, if jobless claims fall below expectations, the US dollar may strengthen, exerting downward pressure on EUR/USD. Traders will closely monitor these data releases for cues on future monetary policy decisions and currency movements.
