The global foreign exchange market has become more volatile this week. Major currency pairs have shown a rebound momentum. The market expects the Federal Reserve to keep interest rates unchanged. The euro and the dollar against the yen have both recorded gains this week.

In the first week of June 2025, the global foreign exchange market showed large fluctuations on the eve of the Federal Reserve's interest rate meeting. According to market data, the EUR/USD exchange rate rebounded from last week's low of 1.069 to 1.081, showing that the market's confidence in the stability of the ECB's policy has recovered. At the same time, USD/JPY rebounded from 155.3 to 156.1, benefiting from the overall strength of the US dollar and the dovish stance of the Bank of Japan.

Analysts pointed out that although the Fed is expected to keep interest rates unchanged at its June meeting, expectations on whether interest rates may be cut this year have gradually entered the market discussion agenda. From a technical perspective, after EUR/USD broke through the key level of 1.08, the short-term target is 1.0880, while USD/JPY continues to be constrained by the previous high of 156.5.

Investors need to pay close attention to the performance of data such as the US CPI, unemployment rate and consumer confidence index in the coming week. These data will directly affect the trend of the US dollar and the market's judgment on policy prospects.

Summarize:
The current foreign exchange market reflects that global investors' sensitivity to macroeconomic policies continues to rise. In the face of uncertainty, traders are advised to adopt risk control measures and pay attention to the release of key economic indicators. The trend rebound of major currency pairs provides potential opportunities for short-term trading, but we still need to be vigilant about the risks brought by market fluctuations.