- EUR/USD snaps five-day losing streak, rises 0.30% in North American session following Eurozone data indicating easing inflation in some countries.
- US consumer confidence advances, supporting the gains but falls slightly below April’s figure, reflecting concerns about future business conditions.
- Inflation expectations are elevated but stable at an average of 6.1% over the next 12 months.
EUR/USD snaps five straight days of losses, rising some 0.30% in the North American session after a tranche of Eurozone (EU) economic data showed that inflation in some countries of the bloc appears to ease. Meanwhile, consumer confidence advances in the United States (US), capping the EUR/USD gains. At the time of writing, the EUR/USD is trading at 1.0727.
EUR/USD underpinned by upbeat sentiment, soft US Dollar
Wall Street trades mixed, though tech stocks climb on AI’s frenzy. The Conference Board (CB) revealed that Consumer Confidence in May rose to 102.3, below April’s 103.7, but exceeded estimates of 99. “Consumer confidence declined in May as consumers’ view of current conditions became somewhat less upbeat while their expectations remained gloomy,” said Ataman Ozyildirim, Senior Director, Economics at The Conference Board. The report showed that Americans are becoming pessimistic about future business conditions, though expectations for jobs and income remain steady.
Inflation expectations remain elevated but stable at a 6.1% average over the next 12 months.
Recently, the Dallas Fed Manufacturing Index for May plunged by -29.1, below the previous month's -23.4 contraction, signaling that business activity continued to deteriorate.
The US Dollar Index (DXY), a gauge that measures the buck’s value against a basket of six currencies, is down 0.06%, at 104.116.
Aside from this, the Eurozone economic agenda featured May inflation in Spain, with MoM figures at -0.1%, below estimates of 0.1% and well beneath the prior’s month reading of 0.6%. Annually based, inflation expanded by 3.2%, below forecasts of 3.5%.
Meanwhile, European Central Bank (ECB) speakers led by Lithuanian policymaker Gediminas Simkus commented that the ECB could raise ratees in June and July, echoing comments by many policymakers that June’s hike is not the last. Nevertheless, when speaking about September, he said, “it’s too early to say.”
EUR/USD Technical Levels
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