The euro rose in European trade on Tuesday against the dollar on track for the third straight profit in a row amid renewed inflationary pressures on the European Central Banks policymakers, which hurt the odds of an ECB rate cut in June.

Later today, the Federal Reserves policy meeting will commence and will likely provide clues on the path ahead for US interest rates this year.

The Price

The EUR/USD price rose 0.1% today to $1.1327, with a session-low at $1.1279.

The pair rose 0.15% on Monday away from a two-week trough at $1.1265.

European Rates

Earlier data showed eurozone inflation passed estimates in April, renewing pressures on ECB policymakers.

Eurozones consumer prices rose 2.7% in April, up from a 2.4% rise in March, and passing estimates of a 2.5% increase.

Following the data, the odds of an ECB 0.25% interest rate cut in June fell from 60% to 50%.

Now traders await a batch of data and remarks by ECB officials this week to gather more clues.

The Fed

Today, the Federal Reserve will convene and discuss monetary policies, expected to hold interest rates unchanged.

The Feds monetary statement and Chair Powells subsequent press conference will likely provide clues on the path ahead for policies.

US President Donald Trump continued to pressure Powell to cut interest rates, however he said wont fire him before the end of term in May 2026.

According to the Fedwatch tool, the odds of a Fed 0.25% rate cut in May stood at just 8%.

The odds of such a cut in June stood at a healthier 65%.

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