EUR/USD: Gaining energy for a big move

EUR/USD has been clinging to its range as Europe edges toward reopening while US growth figures and the all-important Fed decision are set to roc the pair, according to FXStreet’s analyst Yohay Elam.

Key quotes

“The US publishes its initial estimate of GDP in the first quarter,  providing a broad overview of coronavirus carnage. Economists expect an annualized fall of 4%, the worst since the crisis, ahead of a double-digit squeeze in the second quarter.” 

“The Fed probably already has the growth figures as it prepares to announce its decision later in the day. The world's most powerful central bank will likely leave its policy unchanged but is set to publish new economic forecasts.” 

“Germany has suffered a setback, with growing infection rates that may force the continent's largest economy to reimpose restrictions. Lifting lockdowns and then reinstating them deals a blow to consumer and business confidence. 

“Germany's preliminary CPI figures for April published on Wednesday will likely show a substantial downfall in inflation, potentially adding pressure on the ECB to act, yet it is divided along the same north-south lines as EU leaders.”