May 31th, Euro is consolidated on the balance line

On Friday, May 27, at the end of the day, the euro rate fell by 0.02% to 1.2192. After the release of American statistics, the EUR / USD pair dropped to 1.2133. Having literally renewed the minimum, the price turned up sharply against the background of the fall in the yield of 10-year US bonds to 1.579%. By the close of trading, the pair returned to the level of 1.2205. The DXY dollar index fell from 90.43 to 89.97 points.

The benchmark US PCE index rose to 3.1%, up from the expected 2.9% and 1.9% in March. On a monthly basis, the index was 0.7% against the forecast of 0.6% and the previous value of 0.4%.

The basic price index for personal consumption expenditure shows the change in prices for a fixed basket of consumer goods and services purchased by US residents. Investors considered the rise in inflation to be temporary, so bond yields fell.

Scheduled statistics (GMT +3):

• 15:00 Germany is to publish the consumer price index for May.
• 15:30, Canada will release PPI for April and announce the change in the balance of payments for the 1st quarter.

Current situation:

At the time of this writing, the euro is worth 1.2189, the value of the dollar index is 90.07 points. Monday is a UK and US weekend. The US debt market does not work, so market participants do not have a guide today.

Of the major currencies, the Australian dollar shows the greatest plus against the US dollar. The news background is poor. It is believed that the major pairs will keep sideways movement until Tuesday. Trading range for Euro: 1.2150 (3) -1.2215 (2).

Summary: after Friday's fall, the EUR / USD pair recovered to 1.2205 and is trading sideways above the balance line (sma55) for 14 hours. Trading volume was reduced on the back of the closure of the US and UK stock exchanges on the occasion of national holidays. There is an opinion that the main pairs will remain flat until Tuesday.

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