EURUSD rises over 1.0780, Indicating more interest in riskier assets.

The EURUSD rose to 1.0780 during Monday’s European session, owing to Improving market confidence.

The ECB is likely to begin cutting interest rates in June.

The major currency pair is up as traders expect the European Central Bank (ECB) to Decrease interest rates more quickly than the Federal Reserve (Fed). Financial markets estimate that the ECB will drop interest rates by 70 basis points (bps) this year, beginning with the June meeting.

Investors are eagerly awaiting US inflation Statistics for further advice on the Fed’s interest rates.

On the contrary, the Federal Reserve Interest rates are projected to be reduced beginning in September. With investors expecting the Fed to cut borrowing rates by 45 basis points by the end of the year.

This week, the Euro will be guided by Eurozone Q1 preliminary GDP figures, which will be released on Wednesday. Eurostat is anticipated to report that the economy has risen gradually by 0.3% quarterly and 0.4% annually. The GDP report will provide new insights into the Eurozone’s economic picture. EURUSD will also be influenced by the US Consumer Price Index (CPI) data for April, which will be announced on Wednesday.

Daily Market movers: EURUSD gains ahead of critical Eurozone and US economic data.

EURUSD maintains increases near 1.0780. as market sentiment is positive. S&P 500 futures rose nominally in the European session as investors shrugged off anxiety ahead of the release of the US Consumer Price Index (CPI) data for April on Wednesday.
Economists predict that annual headline inflation will fall to 3.4% in April from 3.5% in March. The annual core CPI, which excludes volatile food and energy costs, is expected to have slowed to 3.6% from 3.8% previously. Monthly headline and core inflation are predicted to be 0.3%, down from 0.4% before.

US consumer inflation statistics will have a big impact on market expectations.

US consumer inflation statistics will have a big impact on market expectations for Federal Reserve rate cuts. Which investors are currently anticipating at the September meeting. CME FedEWatch tool indicates that there is a 61% likelihood that interest rates will fall from their present range of 5.25%-5.50%.
Before the US CPI data. Investors will pay attention to the US Producer Price Index (PPI) data for April, which will be released on Tuesday. The producer inflation data will show if business owners raised or reduced prices for goods and services on the premises.
The US Dollar Index (DXY). Which tracks the US dollar’s value against six major currencies, is trading near 105.30 in Monday’s European session. Last week, the US Dollar was under pressure following a substantial increase in Initial Jobless Claims for the week ending May 3. Which lowered investors’ confidence in the US labor market’s resilience.