Anna 
In Wednesday’s European session, the EUR/USD pair lingered within a narrow range around 1.0850, with expectations of continued sideways movement prevailing ahead of key events later in the week. Market participants anticipate the release of the Federal Open Market Committee (FOMC) minutes later today, followed by the publication of preliminary Purchasing Managers Index (PMI) data for May from both the Eurozone and the United States on Thursday. These data releases are poised to offer insights into demand trends, inflationary pressures, and employment dynamics.
The Euro’s support against the US Dollar persists as doubts linger regarding the European Central Bank’s (ECB) potential extension of interest rate cuts beyond June. While a few ECB policymakers, including Bundesbank President Joachim Nagel, President of De Nederlandsche Bank Klaas Knot, Belgium Bank Governor Pierre Wunsch, and Bank of Latvia Governor Martins Kazaks, suggest the possibility of a rate-cut move in June, they caution against premature follow-up actions.
Regarding the inflation outlook, ECB’s Nagel acknowledged potential fluctuations in inflation levels, particularly driven by energy prices. He expressed his expectation for inflation to continue its decline towards the ECB’s 2% target, forecasting it to reach this goal by 2025.
