• EUR/USD rebounds after weaker ISM Services PMI data undermines the US Dollar. 
• Services inflation in the US is proving sticky but the PMI’s Prices Paid component showed a fairly steep fall. 
• The odds of a June interest-rate cut from the Fed have recovered after the data. 

EUR/USD is rebounding and trading back above 1.0800 on Thursday, following the release of lower-than-expected ISM Services PMI data from the US. 

The data increases the probability of the Federal Reserve (Fed) cutting interest rates by June, bringing it more in line with the more concrete expectations of when the European Central Bank (ECB) will start cutting rates. 

The US Dollar (USD) suffered after the release because relatively lower interest rates or their expectation thereof are usually negative for a currency since they reduce inflows of foreign capital.