EUR/USD is showing little movement on Tuesday, as the holiday hangover continues in the markets. Currently, the pair is trading at 1.1253, down 0.03% on the day. There are no major events, so the pair is likely to have a quiet day. The eurozone releases consumer confidence, which is expected to remain unchanged at -7 points. In the U.S., New Home Sales is forecast to slow to 647 thousand, while the Richmond Manufacturing index is also projected to remain unchanged at 10 points. On Wednesday, Gemany releases the Ifo Business Climate index.
With the eurozone mired in an economic slowdown, investors are hoping that the German locomotive will pull the rest of the eurozone back onto the tracks. German numbers have also disappointed, particularly manufacturing, which has been hit hard by the global trade war. Not unsurprisingly, German business climate has been steadily losing ground since the middle of 2018, reflective of weakening economic conditions. Still, the indicator remains close to the symbolic 100-level, and the April estimate stands at 99.9 points.
Crude oil prices jumped to a 5-month high after the Trump administration announced that it would terminate sanction waivers given to some importers of Iranian oil, as of May 1. This move is intended to further tighten sanctions against Iran and cripple Iranian oil exports. Oil prices are up close to 50% since December, and if the rally continues, we could see volatility from EUR/USD.
