Euro Price Forecast: EUR/USD, EUR/JPY May Slide Ahead Of Sentiment Print

ASIA-PACIFIC RECAP

Equity markets gained ground during the Asia-Pacific trade, on the back of the FOMC retaining its dovish monetary policy stance and the prospect of additional fiscal stimulus. Australia’s ASX 200 (+0.26%), Japan’s Nikkei 225 (+0.21%), Hong Kong’s Hang Seng Index (+0.63%) and China’s CSI 300 (+0.58%) all pushed higher.

In FX markets, the British Pound outperformed its major counterparts, while the haven-associated US Dollar and Japanese Yen slipped lower. Gold prices held relatively steady, while silver jumped 0.75%, despite yields on US 10-year Treasuries climbing 2 basis points. Looking ahead, US Q1 GDP figures headline the economic docket alongside Germ inflation figures for April.

Euro Price Forecast: EUR/USD, EUR/JPY May Slide Ahead of Sentiment Print

DailyFX Economic Calendar

CONSUMER CONFIDENCE, ECONOMIC SENTIMENT DATA IN FOCUS

As expected, the easing of restrictions in several European nations paved the way for the Euro to gain ground against its haven-associated counterparts in the near term. Italy rolled back curbs earlier this week, while Greece is expecting to follow suit at the beginning of next month.

Germany is also contemplating introducing privileges for vaccinated individuals, while France is planning to lift its ban on domestic travel on May 3. These promising developments, alongside the ECB keeping its monetary policy steady for the time being, paint a rather bullish backdrop for the Euro ahead.

However, there is the possibility that much of this has been fully priced into the market, and therefore an underwhelming data release could ignite some short-term weakness.

With that in mind, upcoming consumer confidence and economic sentiment data could prove noteworthy, with a meaningful undershoot possibly leading market participants to discount the Euro against the Japanese Yen and US Dollar.

EUR/USD DAILY CHART – SHOOTING STAR CANDLE COULD IGNITE REVERSAL

Euro Price Forecast: EUR/USD, EUR/JPY May Slide Ahead of Sentiment Print

Chart prepared by Daniel Moss, created with Tradingview

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