The EUR/USD currency pair has been supported by the weakening of the U.S. dollar (USD). Additionally, Germany's retail sales for May are set to be announced today, followed by the Chicago Fed National Activity Index for June.

The Federal Reserve is increasingly likely to cut interest rates further due to the fragility of the U.S. labor market, putting pressure on the U.S. dollar. According to FedWatch, investors expect a rate cut in September.

The European Central Bank (ECB) policy decision was as expected, with no change in interest rates. ECB President Christine Lagarde has postponed interest rate cuts for the time being. Despite the Eurozone's inflation rate showing signs of slowing down, the ECB still needs to maintain high interest rates.

Source: Fxstreet