EUR/USD holds positive ground near 1.0875 inMonday’searly Asian session. Many Fed officials emphasized their cautious stance to hold rates higher for longer. ECB’sSchnabel said they should move cautiously on rate cuts because there is a risk of easing prematurely. The uptick in the major pair is bolstered by the softer Greenback. The Federal Reserve’s Bostic, Barr, Waller, Jefferson, and Mester are scheduled to speak on Monday. Eurozone data highlight will be preliminary May PMI on Thursday.
Richmond Fed President Tom Barkin noted the central bank needs to keep borrowing costs high for longer to ensure inflation is on track to its target. The lower bets on rate cut expectations from the US Fed might lift the USD and create a headwind for the EUR/USD pair. Across the pond, European Central Bank policymaker Isabel Schnabel said the ECB may slash interest rates in June, but warned about further cuts in borrowing costs given uncertainty over the outlook.