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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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