Anna 
The EUR/USD pair pulled back from 1.0880 on Monday as remarks from Federal Reserve (Fed) officials exerted downward pressure on an otherwise quiet trading day. Broader markets remain anxious for signs of a potential rate cut from the Fed, but officials continue to temper expectations amid a challenging inflation outlook that complicates the Fed’s decision-making process.
Tuesday is expected to bring more of the same, with several Fed officials scheduled to speak throughout the day. European traders will also be paying close attention to European Central Bank (ECB) President Christine Lagarde’s appearance. Later in the week, market participants will be closely watching the release of European Purchasing Managers Index (PMI) figures, as well as US Home Sales, PMIs, and Durable Goods Orders.
In a notable development, ECB official Martins Kazaks indicated that June might be an appropriate time to begin cutting rates, raising market expectations of an imminent ECB rate cut. This commentary has weighed on the Euro, causing it to ease against stronger currencies as investors factor in the potential for a growing interest rate differential between the Euro and the US Dollar.
The cautious stance from the Fed and the anticipation of ECB rate cuts have created a dynamic market environment, with traders keenly observing upcoming economic data and central bank communications for further clues on the future direction of monetary policy.
