The European currency continues to consolidate against the US dollar near 1.2200. The early upbeat macroeconomic statistics from the US on the dynamics of jobless claims supported the bullish sentiment for the dollar, however, the growth of the American currency is still limited by the unwavering determination of the Fed to continue its stimulating policy, ignoring inflationary risks. Despite the fact that a number of representatives of the regulator admitted that they are ready to discuss the terms and conditions of the gradual abandonment of incentive measures, the department is not going to rush with them.
In addition to the potentially weaker dollar, euro buyers have continued active vaccination campaigns in the Eurozone, the consistent lifting of quarantine restrictions, and a clear improvement in business optimism. As a reminder, business sentiment in Germany improved significantly in May, with the corresponding indicator reaching its highest level in two years. Germany’s Ifo business sentiment index rose to 99.2 in May from 96.6 in April. Economists polled by The Wall Street Journal had forecast the index would rise to 98.0. Considering the above, the growth of the EUR / USD pair may continue with the target at the level of 1.23 and above.