The biggest story yesterday was the strong bullish run of the EUR/USD pair which surged and recorded a six-month high due to strong data released. U.S. dollar plunged on political turmoil and slowdown of the housing market while U.K. CPI hit a three-and-a-half high but failed to support the pound.
Euro Jumped Higher on Surprisingly Strong Data
The single currency had a recital yesterday, jumping higher against all the G10 currencies. The strong data released boosted the currency while the euro is safer now with Emmanuel Macron the winner of the French presidential elections. Euro area’s preliminary GDP met the forecasts of 1.7%, year-over-year in Q1 while the 19-nation union’s trade surplus exceeded expectations. The trade balance, seasonally adjusted, picked up to €23.1B in March versus market consensus of €18.8B. German ZEW survey was also upbeat and supportive for the single currency. Eurozone’s economic sentiment climbed at 35.1 in May from 26.3 before while Germany’s economic sentiment rose to 20.6 from 19.5 in April. German current situation surpassed forecast and picked up to 83.9 versus 80.1 the previous month.
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