April was a disaster for the USD. Overview for 01.05.2017

Over the last month, the American currency lost 2.27% against the Euro; the market is at a loss.

April was pretty stressful month for the USD. From the beginning of the month, 1.0650, and to the last trading session on April 208^th, 1.0893, it fell by 2.27% against the European currency. The April high was at 1.0951, the low – at 1.0568.

The market almost stopped worrying about the first voting of the presidential elections in France. We remind you that the second voting will feature Emmanuel Macron, a centrist candidate, and Marine Le Pen, who is known for her radical political views. The fact that so far euro skeptics are winning doesn’t make investors happy. The second voting will take place May 7^th, but very unlikely to have stormy reactions.

During the April meeting, the President of the ECB, Mario Draghi, emphasized that there were no conditions, which might allow to close the QE program and that the program would go on as long as it had to, and might be extended if necessary.

It’s pretty interesting that the regulator’s attitude didn’t upset invertors at all in this case, although there were some big purchases under the influence of this rumor.

At the end of April, Donald Trump’s Presidential Executive Office introduced the taxation system reform program. The basis of the program implies that the country’s economy might lose up to 2 trillion dollars of profit in the next 10 years. Many investors and economists are quite skeptical about the program, because today’s amount of the country’s profit can’t really afford such decisions. However, the program was announced and it provided little support to the USD.

During the first week of May, the USA Fed is going to have its meeting, which is expected to provide hints, indications, and comments on what the regulator will do in the nearest future. After that, the market’s attention will be focused on the April reports on employment. The first several days of May, the EUR/USD pair is expected to trade between 1.0735 and 1.0950.

RoboForex Analytical Department