On Monday, May 24, trading in the euro ended with growth. The euro rose in price by 0.27% to 1.2214. Buyers were active in the European session thanks to the sharp rise in the euro / pound pair. The euro also appreciated against the dollar on the back of a decline in the yield on 10-year Treasury bonds to 1.594%. Today, the dollar index is falling again on the back of rising bonds.
Scheduled statistics (GMT + 3)
- At 11:00, Germany is to publish the IFO Business Environment Indicator, the IFO Current Situation Indicator, and the IFO Economic Expectations Indicator for May.
- At 13:00 Britain is to release the Confederation of British Industrialists’ retail sales index for May.
- At 17:00 the US is to publish the consumer confidence indicator and the Fed-Richmond manufacturing index for May, as well as announce a change in new home sales for April.
At the time of this writing, the euro is worth 1.2242. Against the background of the fall of US10Y to 1.596%, the price increased to 1.2260. Buyers were expected to be active on Wednesday. At the auctions in Asia, they pushed the price out of the AA channel. The euro ranks first in terms of profitability (+ 0.37%).
The euro crosses are trading in positive territory. If positive dynamics persist, we should expect continued growth to 1.2285 (projection from tops 1.2177 and 1.2245), because the dollar index broke through the support zone at 89.65–89.70. At the close of the day below the designated zone, the dollar is on the way to 88.95.
At 11:00 Moscow time, Germany will publish three IFO indices. Good data will strengthen buyers’ positions against major currencies. If the data disappoints investors, then growth will slow due to the decline in the cross pair. If the hourly candle falls and closes below 1.2238, it will form a bearish signal.
Summary: the euro has renewed its maximum and flew out of the A-A channel amid a fall in the yield on 10-year Treasury bonds to 1.596%. The TA on US10Y yield points to a fall to 1.583%. The DXY index has broken through the strong support zone 89.65–89.70. At the close of the day below the designated zone, the dollar is on the way to 88.95. Against this background, a target in the area of 1.2285 / 90 lit up for euro buyers.
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