Euro rose in European trade on Wednesday for the first time in four sessions against the US dollar away from recent-six week lows, with the pair still under pressure from mounting EU political risks.

The euro is taking a stand ahead of a busy day in US markets with many events that will impact trends worldwide.

The Price

The EUR/USD pair rose 0.15% today to $1.0753, with a session-low at $1.0735.

The pair lost 0.25% on Tuesday, the third loss in a row, marking six-week lows at $1.0719 amid mounting EU political risks.

EU Parliament Elections

After election results were revealed, the far right groups controlled nearly a quarter of the Brussel-based Parliament, up from a fifth in 2019.

Some analysts noted that even as centrist groups managed to maintain their majority, the new European Parliament is now the most right-wing it has been since its establishment.

Early French Elections

French President Emanuel Macron dissolved the parliament and called for early legislative elections after the results of the EU Parliament elections.

The governing French party lost the EU elections to the far right, forcing Macron to gamble with the new local elections to try and reassert authority.

Crucial Day in the US

First, US May inflation data will be released, followed by the Feds policy decision.

US inflation data will have an important effect on the Feds views towards policy easing and rate cuts in the months to come.

According to the Fedwatch tool, the odds of a September 0.25% Fed rate cut stand at 52%, and the odds of such a cut in November stand at 67%.

While the Fed is expected to maintain interest rates unchanged at below 5.5%, it will issue important forecasts for interest rates and inflation this week.

The Fed is widely expected to reduce the number of expected rate cuts this year from three to two.