FX.co ★ Euro Holds Above $1.13 as Trade Tensions Ease and Investors Eye Policy Decisions

In the first full week of May, the euro has managed to remain above the $1.13 mark, buoyed by relaxed trade tensions following U.S. President Trump's comments that China is still open to a deal. Investors are also focusing on significant upcoming monetary policy announcements from the Federal Reserve, the Bank of England, Norges Bank, and Riksbank. The Federal Reserve is anticipated to maintain interest rates at their current level, given April's robust employment figures. Conversely, the Bank of England is expected to lower rates amid growing concerns about the economic and inflationary consequences of tariffs. Meanwhile, both Norway’s Norges Bank and Sweden’s Riksbank are expected to leave their interest rates unchanged. In the Eurozone, surprisingly strong inflation figures have strengthened the forecast of a 60 basis point rate cut from the European Central Bank by the end of the year. Headline inflation remained steady at 2.2% in April, slightly surpassing the 2.1% prediction. Additionally, services inflation surged to 3.9% and core inflation—excluding food and energy—rose to 2.7%, both of which topped market expectations.