Good data for Germany and later for the Eurozone moved the market during the morning European session. The data helped the Euro take a 50-pips lead against the Dollar, but that lead later narrowed to around 25 pips. Investors tend to use data from the United States instead of the Eurozone, so they await today's important data on the S&P Global Manufacturing PMI for April and the S&P Global Services PMI also for April. In general, World-Signals.com expects a stop in the growth of the Dollar at the levels of 1.06 (EURUSD) and a smooth movement upwards to 1.08 in the coming days.

The dollar remains steady against the Euro this week. But the same cannot be said for oil and the price of gold. The dollar continues to lose against the precious metal, which is setting new records day after day. And oil is about to reach $100 levels, as Russia has promised after becoming the real OPEC+ leading country. Since both economies on both sides of the Atlantic are sufficiently vulnerable to contemporary challenges, the dollar and euro will continue to weaken, respectively. What is seen from technical analysis is that Euro/Dollar will continue in the 1.0770 - 1.0870 consolidation for about a week, after which we expect a break out of these levels. World-Signals.com recommends a narrow trade at the levels around 1.08 with target exits up to 40 pips from the opening point.

Russia's problems are the main factor driving oil prices higher. The many attacks on key oil infrastructure are affecting the exports of the Russian Federation. Despite the sanctions, Russia remains the world's main exporter of oil, either directly or through intermediary countries. On the other hand, the upcoming elections in the United States are the reason why oil did not jump too much on the stock market. The price of oil in the United States affects all commodities, and the price of fuel is one of the key factors in winning the upcoming election. Therefore, Biden and his administration will do everything possible to keep oil prices stable until at least November of this year. Any spikes in the price of oil will be short-lived, as a deviation above $90 will negatively affect the campaign for the most important election in the United States. The bad news for Biden, however, is that the levers to control the price of oil are now outside the United States, even outside its allies. And this could lead to an easy jump in the price of oil to $90 and above $90 levels in the next few months according to world-signals.com analysis.

In the last week, the inflation data influenced the significant growth of gold. Along with gold, investors are turning their attention to cryptocurrencies and especially Bitcoin. The last record in the price of gold is from December 4, 2023. Gold was then trading at $2,144.55. Gold added over $70 to its price today, making it the highest it has been this year. Gold is currently trading at $2,117 levels, having almost touched $2,120 and is very likely, as we claim from world-signals.com, to approach or surpass the December 2023 record high.

EURUSD remains consolidated around the 1.08 levels for the last few days. With a slight break on Thursday, where the Euro-Dollar traded as high as 1.0880 for a short period of time. The strength of the Dollar is still dominant against the Euro, and the economic data is also in favor of the United States. Although this coming week we have a new month on Friday there will be no unemployment data in the United States. But instead we have US Gross Domestic Product on Wednesday, Core Personal Consumption Expenditures on Thursday, and German inflation and retail sales data rounding out the week's highlights. World-Signals.com's expectation for this week is for a smooth decline in the Dollar until the middle of the week, when levels above 1.09 are likely, after which a correction downwards again to 1.08 is possible.

The Japanese yen started to fall again against the dollar, this is the third peak above 150 Yen to the dollar and after the intervention of the Bank of Japan. On Tuesday, USD/JPY traded at a high of 150.87. Levels above USD/JPY 150 are a signal to traders that the Bank of Japan may intervene in the market and lower the rate by at least 300 pips. Therefore, trading above these levels is currently only regulated, and reaching 150 Yen to the Dollar, a decline follows. The first time we saw levels above 150 Yen to the Dollar was on October 16, 2022, and the second time the Bank of Japan intervened was in November 2023. Following the technical and fundamental data, we can conclude that this time we may witness a new record above 151.94 (October 16, 2022 Record). World-Signals.som expects a breakout next week with a probability of levels above 154.00.

The US jobs report came out on Friday. Investors' expectations were for a significant decrease in newly opened jobs compared to the previous month. Strangely, the result was 180 degrees opposite to expectations. The US economy added even more jobs than the previous record month. This gave the dollar strength against major currencies. Although many analysts expect a big correction in the latest data, towards less growth in new jobs, the dollar will maintain its strength this week.

During the past year 2023, the Euro-Dollar moved within narrow limits. The lowest level in 2023 was EURUSD 1.0448, while the highest was 1.1275. That's a difference of 827 pips. Extremely narrow are these limits considering that there have been days in other years when the EURUSD made this 800 pips move in just 1 day! The beginning of 2023 EURUSD started at levels of 1.0685 to end the year at 1.1036. Again, an extremely small difference. For the most part, the Dollar has stopped growing against the Euro since October 2022 and has moved smoothly this year. The reason for this is mainly in the interest rate policy in the United States, where for more than a year there has been talk of an end to interest rate increases. In fact, higher interest rates are not expected this year, but on the contrary, a reduction in the main interest rate, which is now at the level of 5.5%. Expectations for the year 2024 are that the Federal Reserve will begin a smooth reduction of interest rates, and at the end of the year they will be at levels below 5.0%. This will definitely be reflected in a weaker dollar, regardless of the fact that the ECB will most likely also reduce its main interest rate from the current level of 4.5%.