Before the US CPI (Consumer Price Index) was released, the euro moved in a narrow range around the upper 1.03 level from the Asian to the European market.
When the CPI report showed higher-than-expected inflation, the euro dropped to 1.0318. However, later news that the EU trade commissioner would discuss tariff issues with the US helped the euro recover.
Additionally, President Trump announced he would hold talks with Russian President Putin about ending the Ukraine war. If the war ends, Europe’s risks and financial burden may decrease, pushing the euro up to 1.0429.
However, trade and war negotiations are complicated and will take time. Also, since interest rate cuts in the US are now less likely, the euro may still face selling pressure, making the recent rise short-term.
EUR/USD Expected Range: 1.0450 – 1.0340
Note: The information above does not guarantee profits. Please make your own decisions when trading.