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EUR/USD Weekly Forecast: Dollar s decline set to continue on economic progress

5/21/2021 3:14:18 PM GMT Central bankers struggle between economic progress and high levels of uncertainty. Steady growth should fuel inflationary concerns and hurt the dollar further. EUR/USD bullish potential remains intact, market players eyeing 1.2349, the year’s high. The EUR/USD pair trades above 1.2200, as the greenback fell this past week, on the back of speculation that the US Federal Reserve will have to tighten its ultra-loose monetary policy sooner than anticipated. Fed chief Jerome Powell has repeated multiple times that the current policy will remain in place until they see “substantial further progress” toward its goals of full employment and price stability.

EUR/USD Trades Near May s High With A Limited Bullish Momentum In The Near-Term

Share: A better market mood helped the EUR trim its post-FOMC losses. US Treasury yields were sharply down, backing stocks’ recovery. EUR/USD trades near May’s high with a limited bullish momentum in the near-term. The EUR/USD pair recovered the ground lost after the Fed Meeting’s Minutes, trading by the end of Thursday around the 1.2215 level. The market shrugged off the dismal mood ever since the day started, as most Asian indexes closed in the green, leading to gains among their European and American counterparts. Government bond yields retreated from weekly highs, adding pressure on the greenback.

NZD/USD: Recovery capped below 0 7200 after New Zealand Budget

May 20, 2021 04:16 GMTFXStreet News NZD/USD pokes intraday high following the upbeat NZ budget speech. New Zealand budget forecasts improvement in economics, fiscal conditions going forward. Market sentiment dwindles as tapering, trade fears battle vaccine hopes, stimulus expectations. Risk headlines remain the key, US data can also provide fresh impulse. NZD/USD picks up bids to 0.7170, up 0.05%, after New Zealand Finance Minister Grant Robertson unveiled the annual 2021 budget early Wednesday. In doing so, the quote struggles to overcome the previous day’s losses but risk aversion mood tests the pair’s immediate upside. New Zealand (NZ) Finance Minister Robertson said, “Long-term effects of pandemic not as severe as previously thought” while releasing the annual budget for 2021. The key financial statement upwardly revised the GDP forecast from its Half Year Economic Forecast Update (HYEFU) while also expecting a gradual reduction in the fiscal deficit.

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