Investors await May’s US CPI report, expected to show inflation at three-year highs, influencing Fed policy expectations.
The Euro trades marginally higher against the US Dollar for a third day but remains near two-month lows below 1.1575. Geopolitical tensions and upcoming US inflation data limit large USD short positions, keeping the pair capped near 1.1500.
Markets expect May’s US Consumer Price Index to accelerate to three-year highs, following strong Nonfarm Payrolls data. This could reinforce expectations of prolonged Federal Reserve tightening, supporting the USD. Oil prices and geopolitical risks add further pressure on sentiment.
EUR/USD technicals show a bearish bias, with the pair hovering above 1.1505. Momentum remains weak, reflecting investor caution ahead of the CPI release.