EURUSD continues plummeting without a pause. The major currency pair remains under bearish pressure. The current quote for the instrument is 1.0747. Market players barely paid attention to Emmanuel Macron’s win in the presidential elections. Apparently, the results were foregone, so the choice of French people didn’t matter for the Euro.
The major currency pair is under huge pressure from the domination of the US Fed’s monetary policy over the ECB’s one. The European regulator’s stance to tighten the policy is less aggressive than the Fed’s, so if the ECB doesn’t provide any positive signals of its intentions, the Euro may plunge much deeper. This is especially important in anticipation of the US Fed meeting scheduled for next week.
Before that, the US will report on the GDP for the first quarter of 2022. So far, forecasts aren’t so positive – the indicator is expected to gain just 1.0% q/q after adding 6.9% q/q the quarter before. if the actual reading turns out to be worse than expected, the “greenback” might weaken on all fronts. However, this scenario is rather unlikely because the expected reading is already erroneously low. The USD has nothing to be afraid of as long as it is supported by the Fed’s “hawkish” policy.
