Ella 
On Monday, EUR/USD lacked momentum and fluctuated around 1.0860 after the U.S. long weekend holiday. Markets were generally trading normally on Tuesday, after the euro was shaken following the release of a German confidence survey on Monday.
The talking points from central bank planners in Europe and the United States will continue throughout the week. The European Central Bank is almost certain to cut interest rates in June, and traders on the sidelines continue to look for signs of a rate cut from the Federal Reserve. The Chicago Mercantile Exchange’s FedWatch tool shows that the market’s odds of the Fed cutting interest rates by 25 basis points in September are almost flat, down sharply from last week’s probability of more than 70%.
German consumer price index (CPI) inflation data will be released on Wednesday. Markets expect the German economy to grow at a monthly rate of only 0.2% in May, compared with the previous value of 0.5%.
The second half of this week will mainly release U.S. economic data, with U.S. gross domestic product (GDP) on Thursday and personal consumption expenditures (PCE) price index inflation data on Friday. The U.S. GDP in the first quarter is expected to drop from 1.6% to 1.4%, and investors expect the U.S. PCE price index to stabilize at a monthly rate of 0.3% in April.
German retail sales and the Eurozone Harmonized Index of Consumer Prices (HICP) are both due to be released on Friday. German retail sales rose at an annual rate of 0.3% in April, while Europe’s core Eurozone Harmonized Consumer Price Index in May is expected to hold steady at 2.7%.
