EURUSD is in demand. Overview for 27.05.2022

After a 2-day break, EURUSD resumed its growth.

The major currency pair is back to growing on Friday. The current quote for the instrument is 1.0746.

Demand for the USD is not rather low right now. First of all, the global risk attitude is quite high. Secondly, the US Fed confirms its strategy to tighten the monetary policy – here everything is clear and transparent. And finally, the statistics published by the US say that the country’s economy might not handle too aggressive rate hikes. 

The second estimate of the US GDP Q1 showed -1.5% m/m against the first estimate of -1/4% q/q. The expected reading was -1.3% q/q. 

The components of the report showed that the export and wholesale trade made a major contribution to the indicator slowdown. Interestingly, consumer spending rose 3.1%, while the fixed investment added 6.8%. In fact, the economy continues moving forward, although official data demonstrates a decline.  

The Pending Home Sales showed -3.9% m/m in April after -1.6% m/m in March. It’s not a good signal for the real estate sector – people are interested in real estate but aren’t ready to buy. 

Later today, investors should switch their attention to the Personal Spending/Income in April, as well as the Revised University of Michigan Consumer Sentiment. If the data is no surprise, the local uptrend in EURUSD will continue.