The major currency pair has been rising since yesterday in response to rumors that the US Federal Reserve may cut the rate.
EURUSD is keeping its positive momentum on Tuesday morning. The current quote for the instrument is 1.1262.
The FOMC member James Bullard spoke yesterday and said that there might be a reasonable possibility of the rate cut by the American regulator in the nearest future. In his opinion, this move may support the inflation and help it reach the target. Bullard believes that the rate cut may be quite logical, not only due to the inflation slowdown, but increase of trade risks as well.
His comments completely shifted the balance in the major currency pair. Earlier, the possibility of the rate cut was discussed only on the sidelines, but now it was announced by the official. As a result, the USD retreated and has remained weak since then.
In the afternoon, the Euro Area will publish the preliminary report on the CPI for May. The indicator is expected to drop to 1.4% y/y after being 1.7% y/y in April. Apart from this, market players are expecting the Unemployment Rate for April, which may remain unchanged at 7.7%.
In the evening, the USA are scheduled to report on the Factory Orders for April, which may lose 1.0% m/m after adding 1.9% m/m the month before. However, the highlight of the evening is a speech to be delivered by the US Federal Reserve Chairman Jerome Powell. After yesterday’s comments on the rate cut from Bullard. Investors are expecting Powell to either confirm or prove them wrong.