The major currency pair skyrocketed last night and intends to keep the momentum on Tuesday morning.
EURUSD significantly strengthened yesterday evening and is pretty committed to continuing rising today. The current quote for the instrument is 1.1330.
The demand for the USD seriously lowered yesterday due to the decline in the 10Y bond yield and market players’ improved attitude to risks. By early afternoon, investors were driven by concerns about the second wave of the coronavirus outbreak but the situation reached stability by the evening.
The statistics published yesterday showed that the Empire State Manufacturing Index was -0.2 points in June after being -48.5 points in May. It means that the country’s business and manufacturers are slowly coming back to life, and that’s very good.
There will be a lot of interesting numbers today. For example, Germany and the Euro Area will report on the ZEW Economic Sentiment in June and both readings are expected to improve. Strong numbers will provide significant support to the Euro.
In the afternoon, the USA is scheduled to publish the Retail Sales for May, which may slightly correct after plummeting in April. The indicator is expected to add 7.9% m/m after plunging by 16.4% m/m the month before. It might be just a correction so far but it will still be quite positive.
Later, the USA will report on the Industrial Production, which is also expected to improve in May. The better the readings, the better for the USD.
Volatility is returning to the currency market and so many reports and numbers will only make it more unpredictable.