EURUSD traders will mostly focus on the Federal Open Market Committee which meets on Tuesday and Wednesday. The expectations are for a quiet meeting as the Fed has signaled that is waiting to see how the economy rebounds from the COVID-19 lockdown. At the same time, economic data released on Friday showed that employers added 2.5m jobs last month, pushing the jobless rate to 13.3% well below the market consensus of 20% unemployment rate.
In the press conference, investors might get an insight into the options the Fed is considering in the event of economic setbacks caused by a second wave of coronavirus infections.
The Fed has already cut interest rates to zero, and launched an extensive quantitative easing programme and extended billions of USD in loans to companies and local authorities. Fed chairman Jay Powell will reiterate that the Fed is committed to using all tools to do whatever for as long as it takes.
On the data front, in Eurozone, the first-quarter GDP published in April, came in at a 3.8% fall in GDP, amid the coronavirus lockdown measures. European Central Bank is predicting that the Eurozone economy will shrink by 8.7% in 2020.
On Wednesday the U.S. CPI expected at -0.2% below the previous reading of -0.8%.
On Thursday, June 11, we have the Eurogroup meeting, while from the USA investors await the Producer Price Index, analysts expect -0.1% the previous reading was -1.3%. The initial jobless claims expected at 4,272K.
On Friday, June 12, EURUSD traders will focus on Michigan Consumer Sentiment (expectations: 73, previous reading: 72.3).