Ella 
EUR/USD climbed on Wednesday to post one of its strongest single-day performances since 2024, heading towards 1.0900 and on course to make it its fourth straight gain of the week. After the U.S. Consumer Price Index (CPI) inflation fell more than investors expected, risk appetite increased sharply, and the market maintained widespread selling pressure to suppress the dollar.
The U.S. consumer price index (CPI) monthly inflation rate fell to 0.3%, lower than the market median forecast of 0.4%, triggering further increase in market risk sentiment and expectations that the Federal Reserve will cut interest rates in September. The CME FedWatch Tool shows that interest rate markets are pricing in a more than 70% probability of the Fed cutting interest rates by at least 25 basis points at its September meeting.
The final value of the Eurozone’s first-quarter gross domestic product (GDP) was roughly in line with expectations. The first-quarter GDP quarterly rate was 0.3%, which was the same as the expected value and the previous value. Secondary economic data from Europe and the United States will be released in the rest of this week, and the market will be eagerly awaiting whether the Federal Reserve will cut interest rates at the end of the third quarter.
