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FX.co ★ 04.05.2021: Analysts project weaker USD: forecast for EUR/USD and GBP/USD.

04.05.2021: Analysts project weaker USD: forecast for EUR/USD and GBP/USD.

Last Friday’s scenario is likely to repeat. The euro and the pound lose ground against the US dollar. Forex market experts insist that there is a speculative component in the current price movement, caused by the overbought condition of the euro. Fundamentally, the euro looks much stronger than the US dollar, which means that bulls will become active again soon. President Joe Biden keeps pumping trillions of dollars into the US economy. The printing of additional cash may well result in the devaluation of the national currency. Yes, the American economy is rapidly recovering, but at what cost? The March US employment report is a good example of investors’ uncertainty and concerns. Back then, traders preferred leaving earlier for the weekend on strong data, and the dollar did not receive proper support. The same events may unfold this Friday with the Labor Department jobs report looming. Let us take a look at the charts. The current correction in the market is caused by the overbought condition of the euro. Today, the quote is likely to move within the 1.1992-1.2128 range. Long positions can be considered if the pair consolidates above 1.2085 with the target set at 1.2128. As for GBP/USD, the situation is completely different. Here, the bearish trend is likely to accelerate. The whole United Kingdom is currently focused on the Scottish Parliament election to be held this Thursday, May 6th. If the Scottish National party wins a majority, it is likely to hold a referendum on Scotland’s independence from the United Kingdom. At the same time, PM Boris Johnson is facing questions on multiple fronts at once. The Prime Minister will have to explain what he meant by saying that he would rather see "bodies pile high" than take the country into a third lockdown and who financed the refurbishment of his apartment that cost as much as £200,000. The GBP/USD pair is expected to move in the 1.3814-1.4008 corridor. Short positions can be considered if the price consolidates below the support level of 1.3885 with the target set at 1.3814.

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade
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