The euro/dollar continues to decline in price
On Tuesday, the quotes fell to another local low of 1.1720.
Today, US President Joe Biden will outline his $3 trillion infrastructure support plan, which will be implemented at the end of the month and quarter. The release of data on non-agricultural jobs in the US is scheduled for Friday, but a number of markets, including the US, will be closed. While less participation from traders means that consolidation may be more pronounced, this is unlikely to happen this week as investors prepare for the strongest employment market reports in at least 5 months.
March was a good month to buy USD. Thanks to the country's aggressive vaccination program, consumers and businesses are more optimistic, and economic activity is improving. The only and very big risk is Biden's plan to fund infrastructure spending by significantly raising taxes to the tune of $1 trillion to $3 trillion. It is likely to announce the cancellation of the corporate tax cut in 2017, as a result of which the rate was reduced from 35% to 21%. The top personal income tax rates may also rise. With stocks trading at all-time highs, it won't take much effort to lock in profits, causing stocks and risk currencies to fall even lower. With that said, a stock market correction and a high number of new jobs should be positive for the US dollar and negative for the single currency.
In my forecast, I assume a decline of the pair EUR/USD to the level of 1.1650.