EUR/USD is likely to end April on a negative note, as the German data is expected to show an uptick in the jobless rate, and the European Central Bank (ECB) has little or no room to sound hawkish.
At press time, the pair is trading around 1.0860, down over 1% from the monthly opening rate of 1.1039. The shared currency has been offered this month on the inability of the European nations to agree to a comprehensive coronavirus stimulus package and the resulting fears of a prolonged economic downturn. The occasional haven demand for the US dollar also added to the bearish tone around EUR/USD.
German data and ECB eyed:
The German consumer spending, as represented by Retail Sales, is forecasted to have dropped by 7.3% month-on-month in March. Meanwhile, the labor market data is expected to show the jobless rate ticked higher to 5.2% in April from 5% in March.
The European Central Bank (ECB) is likely to leave its policy unchanged and express willingness to provide more monetary stimulus if required. TD Securities Analysts think the EUR will likely react more to the ECB’s influence on sentiment than traditional monetary policy signals.
EUR/USD SHORT (Sell)
ENTER AT: 1.08930