Forecast of the currency pair EUR / USD 02/06/21

Heading into today’s European session the EUR/USD currency pair continues to remain in a tight trading range and the release of retail sales figures from Germany as well as a speech from ECB president Christine Lagarde are likely to be the news driving the price movement.

There is also news out that Italy, Europe’s 3rd largest economy is taking further steps on reopening for business after suffering a huge blow to its finances on the back of the coronavirus. Germany is also considering removing draconian lockdown laws attributed to the virus which should breathe some life into the continent’s biggest economy. This news should bode well for the Euro.

ISM manufacturing numbers from the US came in yesterday above expectations at 61.2 against analysts’ expectations for a figure of 60.7 which failed to help the US dollar as the market seems to be focus on the more important job numbers due out today and tomorrow which are namely the ADT employment change and Non-Farm payrolls report. This news is expected to give an indication of what the Fed intends to do with interest rates as the year unfolds.