The fall of the single currency against the Dollar continued on Friday, the quotes fell to the level of 1.1855.
The pressure of the euro sellers remains steady, and the pair has already fallen to a two-month low. Positive macroeconomic data could not help the single currency. The German producer price index rose 1.5% in May and 7.2% in the last twelve months. In addition, the current account surplus in the euro area increased in April to 31.4 billion euros. German Economy Minister Peter Altmaier said on Friday that the economy is recovering faster than many had feared. According to the updated forecasts, the country's GDP will clearly grow by more than 4% in 2022.
Before the start of the US trading session on Friday, the head of the St. Louis Fed, James Bullard, said that he sees risks of an increase in inflation forecasts, and also confirmed that Fed President Jerome Powell last week opened a discussion about tightening monetary policy. This news provoked a new wave of growth in the dollar, as well as sales of risky assets, including stocks and precious metals, which have recently shown a high correlation. The Fed had expected an inflationary boost, but it was even stronger than expected, Bullard acknowledged. In his opinion, the ideal trajectory of inflation in the United States assumes growth of 3% this year, 2.5% next year, and then a slowdown to 2%.
Forex trading. Euro-Dollar EUR/USD forecast for today, June 21, 2021
The forecast assumes a corrective growth of the Euro-Dollar exchange rate to the levels of 1.1880, 1.1900 and 1.1920.