The index of dollar or DXY increases by 0.72 percent to 91.29. It happened in a Friday sale session and related to the profit-taking action done by the investors. The American economic data release is also positive. 

The analyst said that the profit-taking happened at the end of the month to the short position of US dollar caused the significant jump tonight. Generally, it likes giving a backrest for the USD. 

That was done to end the April session which is so hard for that main currency. Commonly, an analyst doesn’t predict that the Dollar decline trend will still happen in May. There are some reasons for it. 

Bearish Bias for the US Dollar

In a long-term period, the analyst think that the bearish bias will still happen for USD. Besides that, a range of the United States economic data released since some days ago are is quite solid. 

The first quarter GDP data in America is accelerated higher than the expectation from a quarter before. Meanwhile , the final UoM consumer sentiment index increased quite good. 

It was from the initial estimation of 86.5 to become 88.3 in April. This result supports the signal that the American people will still have the high and strong shopping for several months ahead. 

Although USD is stronger, the movement of this currency to its major rivals is quite mixed. The strengthening is so bold versus the Euro because Europe is still unable to be close to the US recovery. 

The EuroZone is Lagging Far Behind

From the vaccination side, pandemic maintenance, and the consistent economy recovery, it can be said that the EuroZone is lagging far behind. It is especially from a huge country like America. 

EUR/USD felt for about 0.80 percent to 1.2024 as the low level in a week. However, the different thing can be seen if it is compared to the Canadian dollar. The USD/CAD increase was thin.

That pair only increased by 0.05% to 1.2284. That was still around the low level in two years. The background is a divergence of monetary policy by The Fed and the Bank of Canada.

Based on an announcement made by FOMC last Thursday, The fed still showed the dovish sentiment. It is although they admit that the US economy is recovered quite fast from the crisis. 

Meanwhile, BOC is Hawkish

Vice versa, BOC is more showing the hawkish situation by indicating that the tapering asset purchase will be done at the end of 2022. Elsewhere, Euro was slipped for more than 0.2 percent. 

That currency was around 1.20965 to the US dollar in the middle of the European session yesterday. It is because the EuroZone I/2021 GDP data release which showed that the area is still in a recession.

Meanwhile, the EUR/USD decline this time continues the step back from the limit of 1.2150 which has been done since the US GDP data released yesterday. The analysts have their own opinions. 

There is a Time For That Delay

In fact, many analysts think that the economic rebound of the EuroZone is possible to be delayed until the second quarter period. They are quite optimistic to the economic outlook there. 

That detail gives a sign of a rebound potential to the next period. Aside from the decline of GDP, its development is quite good. It is especially in the first quarter where the basic activities done. 

The loose social limitation has a strong impact on the public’s consumption. It means that the consumers are so excited to shop again after the economic activities are opened again. 

Another positive thing is the declining jobless level in that country during the second wave of COVID-19. That was confirmed yesterday where the March release declined. It was from 8.2 became 8.1%.

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