EURUSD is consolidating. Overview for 31.05.2021

EURUSD is consolidating at the end of this extremely volatile spring; the USD lost 0.8% over three months. 

The major currency pair is rather quiet and stable early in the week. The current quote for the instrument is 1.2192.

Spring of 2021 has been really volatile for EURUSD – stimulus programs continued making the “greenback” go down and market players just couldn’t find any reason for supporting the American currency. By the start of the summer, the market situation reached stability, more or less. No one is afraid of either an inflation boost in the USA or early termination of the Fed’s stimulus programs. Everything is slowly returning to normal.

The statistics published last Friday showed that the Personal Income in the USA dopped 13.1% m/m in April after adding 20.9% m/m the month before. The indicator lost less than expected, that’s why investors barely responded to the report. As everybody knows, in March the American population got checks from the government and this money quickly returned to the economy. In April, people had no such “gifts”, so the indicator corrected. 

The Personal Spending, in its turn, added 0.5% m/m, the same as expected, after expanding by 4.7% m/m in the previous month.

The revised data on the UoM Consumer Sentiment showed 82.9 points in May against the preliminary and expected readings of 82.8 and 831 points respectively.

The USA is celebrating Memorial Day today, so no American statistics are planned.