EURUSD is correcting and moving away from its 3-month highs.
The major currency pair is falling in the middle of the week and helping the market to find balance. The current quote for the instrument is 1.2130.
The statistics that came from Europe yesterday were quite positive. For example, the German ZEW Economic Sentiment skyrocketed to 84.4 points in May after being 70.7 points the month before and against the expected reading of 72.0 points. The same indicator for the Euro Area showed 84.0 points after being 66.3 points over the same period of time. these are pretty good signals: the third wave of the coronavirus pandemic is dying away and that’s good for business prospects.
In the meantime, currency market players are still discussing American inflation and the possibility of its further growth. This prevents the “greenback” from recovering.
Later today, one should pay attention to the Industrial Production in the Euro Area, which is expected to add 0.8% m/m in March after losing 12.0% m/m in the previous month. The stronger the recovery, the better for the Euro and the European economic outlook.
The USA is scheduled to report on this week’s most anticipated macroeconomic indicator, the Consumer Price Index for April. Market expectations imply a 0.2% m/m growth after a 0.6% m/m decline in March. If the actual reading is somewhere near the expected one, the USD may get a chance to recover.
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.