EURUSD falls on strong US data.
EURUSD fall strongly today as the result of the powerful bullish U.S. dollar sentiment after USA showed the robust data describing the quickly recovering economy and the heating inflationary pressures in USA. Core PCE inflation jumped to 3.1% in April vs. 2.9% expected. Other figures also show a steaming hot economy. Higher than expected inflation data would be putting immense pressure on the Fed to start thinking of hiking the interest rates in USA – any hint of which would be a very strong sell signal for this currency pair. The dollar is also underpinned by the reports that President Joe Biden will seek $6 trillion in federal spending for the 2022 fiscal year.
Next support to watch – 1.2050.
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