After plunging last Friday, EURUSD reached stability and is currently consolidating.
The major currency pair ended April with a plunge and started May with a consolidation. The current quote for the instrument is 1.2017.
Market activity suddenly revived last Friday when the USA reported on the Personal Income and Spending. The first indicator added 21.1% m/m in March after losing 7.0% m/m in the previous month and against the expected reading of 20.1% m/m. The second indicator, in its turn, expanded by 4.2% m/m after decreasing by 1.0% in February and against the expected reading of 4.3% m/m.
Don’t forget the reason for such a significant increase, consumer stimulus checks given by the government to the population, which went into the country’s economy right away.
The final report on the UoM Consumer Sentiment increased to 88.3 points in April after being 86.5 points in March and against the expected reading of 87.3 points. The vaccination campaign is speeding up and the chances for most states and businesses to get back to their normal pre-COVID lives are increasing as well. The Current Conditions remained unchanged at 97.2 points, while the Economic Expectations went from 79.7 to 82.7 points, which is quite good.
The USD was very positive in its response to the numbers – the sooner the economy gets back to its normal pace, the better.
Today, one should pay attention to final reports on the Manufacturing PMI in Germany and the Euro Area. The same report will be published by the USA in the evening. The USA is also scheduled to report on the ISM Manufacturing Prices and the Construction Spending. Later, the US Fed Chairman Jerome Powell is set to deliver a speech.
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.