05:17 AM EDT, 06/13/2024 (MT Newswires) -- The euro remained under pressure from a recovering US dollar in early European trade on Thursday as softer than expected industrial production and fallout from a hawkish Federal Reserve dot-plot revision weighed on the single currency.

EUR/USD was quoted 0.06% lower around 1.0806, making for a reversal of around half of the gains made previously on Wednesday, after Eurostat said industrial production fell 0.1% MoM and 3% YoY in April.

That was below the consensus for a 0.2% MoM increase and a 1.9% YoY decline, leading the euro to remain under pressure near overnight lows around the 1.08 handle against a recovering US dollar.

EUR/USD had rallied more than 100 points to trade up around 1.0850 on Wednesday when US inflation stalled in MoM terms for May, leading markets to bet with greater confidence that interest rates would be cut in the near future.

However, a hawkish revision to the Fed's dot-plot then saw the number of rate cuts projected for this year reduced to just one late on Wednesday, from three previously, with the bank also raising its estimate of the long run neutral rate to 2.8%.

The Fed acknowledged that "modest further progress" returning inflation to the 2% target has been made in recent months but reiterated that it doesn't expect to cut interest rates until it gains greater confidence in the return to the target.

US dollar pairs reversed around half their prior losses late on Wednesday as a result, and remained buoyant throughout the Asia session and during the European morning on Thursday.