Euro under pressure and after easing measures

Germany’s retail sales fell more than expected in April, data released by Destatis revealed on Wednesday. Retail sales fell 5.5 percent on a monthly basis, reversing a 7.7 percent increase in March. Economists forecast a 2 percent drop in sales in April. Year on year, retail growth slowed to 4.4 percent from 11.6 percent in March. This was slower than the expected spread of 10.1 percent. Germany today reported 4,917 new cases of coronavirus, 179 deaths. The seven-day average rate is now kept at 36.8, but as long as it stays below the 50.0 thresholds, the German government will certainly stick to plans to ease the restrictions in the coming weeks. Many Germans want to wear a mask as protection against diseases even after the coronary virus pandemic. According to a representative survey by the Civey Institute, 44.7 percent voted to keep the masks.

On the other hand, 41.9 percent want to abolish the obligation to wear a mask permanently. Due to epidemiological measures, including masks, the number of infectious diseases has decreased in Germany. Thus, the flu completely “disappeared” in the past flu season. Spain recorded the sharpest monthly drop in the number of unemployed ever in May, the Ministry of Labor announced today. All economic sectors and all Spanish regions reported lower unemployment, with the number of unemployed in the services sector falling the most, which was hit hardest by the pandemic. May is traditionally a strong month for the Spanish labor market, as many companies are hiring ahead of the summer tourist season.

Looking at the chart on the four-hour time frame, we see that the euro is under pressure and has fallen below moving averages and made a break below the lower trend line of support. Now the pair is testing the zone around 1.21500, and if it finds support, we can go down to 1.21000. Looking at the MACD indicator, we currently have a bearish signal, and based on it, we can expect the continuation of this pullback to better support.