• EUR/USD recovers after Lagarde says “the game is not over” with inflation. 
• Slow economic growth and sticky inflation in the Eurozone could weigh on EUR/USD. 
• Federal Reserve Chairman Powell talks about keeping rates higher for longer, and longer.

EUR/USD is trading in the 1.0680s on Thursday, marginally higher on the day, building on the U-turn it began midweek after touching down at the 1.0601 lows of April. 

It is still too early to say whether EUR/USD is undergoing a correction of the downtrend or a reversal, given the strong bullish recovery so far – of 80 pips in 36 hours – keeps bullish hopes alive.