Good day forex traders.
Welcome to our weekly review of the EUR/USD.
In recent months we have not seen much of trend for the currency pair as differing sentiments pulled from opposite ends.
Looking at the weekly EUR/USD chart above, we note that it is now consolidating at the region of 1.14.
Should it remain above 1.14, we may expect further bullish momentum. A return of bearish pressure will probably target 1.12.
Investors are on a bullish stance towards the Euro Zone. It was reported that ECB President Mario Draghi made hawkish comments at the ECB forum in Portugal. He gave an optimistic presentation of the euro area. He felt that recovery was broad and gave little attention to the weak inflation levels.
Over in the US, growth was at a faster pace than previously thought in the first three months of the year. BBC reports ”
The US Commerce Department said the economy grew at an annualised pace of 1.4% in the January-to-March period.
The rate was an upward revision from the previous estimate of 1.2%, which itself was an increase from the original reading of 0.7%.
However, it still marks a slowdown from the final quarter of 2016, when the economy grew at a rate of 2.1%.
The latest growth figure was helped by an increased estimate for growth in consumer spending, which was revised up to a rate of 1.1% from 0.6%.
“The economy is expanding at a solid, if unspectacular pace,” said Gus Faucher, chief economist at PNC Financial Services. ”
The week ahead is crucial as the US Non Farm Payroll is due. G20 meetings will happen too at the end of the week. Proper money management is important.