Ella 
The euro saw a boost this week on the back of positive Eurozone business activity data, while the US dollar faced pressure amid weaker-than-expected economic indicators. As the focus shifts to the Federal Reserve’s policy meeting and the Non-Farm Payrolls (NFP) report next week, the EUR/USD weekly forecast tilts slightly bullish.
Throughout the week, the EUR/USD pair experienced fluctuations driven by contrasting economic data. Eurozone business activity data provided a bullish momentum for the euro, signaling resilience in the region’s economy. However, market sentiment remained cautious as policymakers anticipate the European Central Bank (ECB) to implement its first interest rate cut in June.
On the other hand, the US dollar struggled amid disappointing domestic economic indicators. Business activity in the US fell more than anticipated, while gross domestic product (GDP) figures missed forecasts, suggesting a slowdown in economic growth. Despite this, inflation figures remained elevated, tempering expectations for interest rate cuts.
The week concluded with the release of the core Personal Consumption Expenditures (PCE) price index, which met expectations by holding steady at 0.3%. This maintained a sense of stability in inflationary pressures, albeit at relatively high levels.
Looking ahead, market participants will closely monitor the Federal Reserve’s policy meeting and the release of the Non-Farm Payrolls report next week. These events are likely to influence the direction of the EUR/USD pair, with investors keen to gauge the central bank’s stance on monetary policy and assess the health of the US labor market.
As uncertainty prevails in the global economic landscape, traders may continue to navigate volatility in currency markets. Factors such as geopolitical developments, pandemic-related concerns, and shifts in risk sentiment could further impact currency dynamics.
In summary, the EUR/USD weekly forecast maintains a slightly bullish bias, with attention turning to key economic events in the week ahead. Traders will remain vigilant for any developments that could sway market sentiment and drive currency movements.
