06:51 AM EDT, 04/04/2024 (MT Newswires) -- The EUR/USD (EUR/USD) was rebounding above 1.0800 in European morning trading on Thursday following the release of lower-than-expected ISM Services PMI data in the US.

The pair was trading at 1.0859 in recent trading.

That PMI data surprise is seen as boosting the probability of the Federal Reserve cutting interest rates by June, aligning with sentiment of when the European Central Bank will start cutting rates. The ECB next meeting is slated for Apr. 11.

"The fact that a June rate cut at the ECB has now been fully priced in is leaving room for the market to sell the fact, which means Euro downside has been accounted for, leaving the currency in position to rally back to the topside," according to LMAX Group, in a note Thursday.