■EUR/USD shows resilience above 1.0800 level during Asian session.
■Federal Reserve officials maintain cautious stance on Buy Monero Redditinflation progress.
■Eurozone economic sentiment surprises to the upside with 47.0 reading in May.
The EUR/USD currency pair continues to demonstrate strength in early Wednesday trading, hovering around the 1.0815 level as market participants position themselves ahead of significant economic announcements. The financial community's attention remains divided between the preliminary Eurozone GDP figures for Q1 and the highly anticipated US Consumer Price Index report for April, both scheduled for release later in the trading session.
Recent commentary from Federal Reserve Chairman Jerome Powell has reinforced expectations for prolonged higher interest rates, with the central bank chief acknowledging slower-than-anticipated progress on inflation reduction. This perspective gained additional support from Tuesday's Producer Price Index data. Kansas City Fed President Jeffrey Schmid echoed these concerns, emphasizing that inflationary pressures remain elevated and require continued policy attention. Such hawkish rhetoric could potentially bolster the US Dollar's position against its European counterpart in the short term.
The upcoming US inflation report carries substantial weight for future monetary policy decisions. Market analysts project a modest deceleration in annual headline CPI to 3.4% for April, down from March's 3.5% reading. Similarly, core inflation is expected to retreat to 3.6% from the previous 3.8%. Should these forecasts materialize, they could revive discussions about potential rate cuts later in the year, potentially weakening the Dollar and providing upward momentum for EUR/USD.
European economic indicators have shown signs of improvement, with the ZEW Economic Sentiment Survey exceeding expectations at 47.0 for May, compared to April's 43.9 and surpassing the consensus estimate of 46.1. This positive development offers temporary support to the Euro. Market focus now shifts to the Eurozone's quarterly GDP performance, with economists anticipating 0.3% quarter-over-quarter growth for Q1, while year-over-year expansion is projected to remain stable at 0.4%.
