The pressure on the ECB to lower interest rates in its June 6th meeting is immense, and the market is fully expecting a cut.

Riding above all three moving averages and with the RSI sitting at 58, the outlook for the EUR/USD is bullish in the short-term.

After the CPI figures were released, the chances of a September rate cut increased to 72%, with a July rate cut not out of the question either, with a 35% chance.

The good news is the expectations of divergence in rates have brought renewed volatility and volume to the Forex markets.

But it does seem like the Bank of Japan has drawn a line in the sand, so JPY bears are cautious