EUR/USD Forecast: Buyers maintain the pressure in thin market conditions

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Financial markets struggle for direction on Monday, as holidays in the United Kingdom (UK) and the United States (US) limit trading volumes.

EUR/USD Current price: 1.0849 The German IFO Survey showed no progress in business sentiment in May. Holidays in the United Kingdom and the United States likely to maintain EUR/USD in range. EUR/USD maintains the bullish strength, although the momentum is limited amid bank holidays. Financial markets struggle for direction on Monday, as holidays in the United Kingdom and the United States limit trading volumes.

He added that inflation is converging to the 2% goal in a sustained way, paving the way towards a June interest rate cut. However, he said it depends on a continued disinflationary trend and no geopolitical setbacks. ECB officials had long anticipated a June rate cut, which, at this point, seems to be fully priced in. However, they have also been dialling back expectations for a July movement, warning they will take time before further monetary loosening.

 

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