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EUR/USD holds losses near 1.1850 as US, China holidays keep trade muted | FXStreet
- EUR/USD opens the week near 1.1860 as US and China markets stay shut for holidays, keeping trading muted.
- Soft US CPI data raised expectations for Fed rate cuts later this year, supporting the dollar’s softer outlook.
- Markets expect about two 25-bp Fed rate cuts by year-end, with the first move likely in June according to CME FedWatch.
- ECB remains largely unconcerned about the euro’s rise, with Lagarde calling the inflation outlook in a good place.
- US payrolls rose and unemployment fell, signaling a stable labor market that supports a cautious monetary stance.
- FXStreet notes broader context on euro dynamics and ongoing market expectations for policy moves this year.
- Investors base decisions on a backdrop of thin liquidity due to holidays, delaying significant moves in EUR/USD.
- CPI data suggest inflation progress may allow the Fed to lower rates later in the year.
- FXStreet’s feature emphasizes the euro’s resilience amid improving inflation signals.
- The article discusses how euro and dollar movements interact with ECB and Fed policy signals.
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