FX.co ★ Euro prepares for US data at the end of the week

EUR / USD

Despite the holiday in the US and Britain on Monday, it turned out to be quite a trade. In Italy, the political crisis is growing. Italian President Sergio Mattarella refused to approve Paolo Savona as Minister of Economy (Eurosceptics) and decided to reassign the new Prime Minister without the approval of Parliament - Carlo Cottarelli, a former IMF official. For this, "Five Stars" and "League of the North" declared impeachment to the president. The Italian stock index FTSE MIB lost 2.05% for the day, while the yield on the 2-year government bonds jumped from 0.47% to 0.93%. The single European currency fell by 24 points.

Today, the absence of economic data for the euro area had slightly weakened (as expected) the secondary data for the US, and the euro may have a chance to slow the decline. The house price index of S&P / Case-Shiller in the 20 largest cities in March show a decline from 6.8% YoY to 6.5% YoY, while consumer confidence index from the Conference Board for May is forecasted to drop from 128.7 to 128.2. But the chances of consolidating the euro is not enough because American traders are opening their trading week today. And they are already aiming at working out good employment data according to the forecast. Tomorrow, the growth of jobs in the private sector is expected at 186 thousand, and the Non-Farm Employment Change is projected at 190 thousand on Friday.

We are expecting the euro to fall in the range of 1.1470-1.1500.

* The presented market analysis is informative and does not constitute a guide to the transaction.