EURUSD Short after bearish confirmation

1) European data released these last few days was generally encouraging, underpinning the common currency. Services output was upwardly revised in April, investors' confidence improved, and retail sales ticked higher. However, the European Commission downgraded growth forecasts for this year and the next, leaving inflation ones unchanged.

2) US data, on the other hand, was softer-than-anticipated, with PPI and CPI missing the market's expectations. Nothing to worry about, yet supporting the current 'patient' Fed's stance.

3) The upcoming week will be a bit more interest in terms of data, as Germany will release April inflation next Tuesday, while both, the EU and Germany will release Q1 GDP estimates on Wednesday. A miss in these numbers will surely bring back EUR sellers. EU inflation will be out Friday, but it would have a lesser impact on prices.

4) As for the US, action will begin Wednesday, when the country will release April Retail Sales and Industrial Production, while by the end of the week, the May preliminary Michigan Consumer Sentiment Index, foreseen at 97.7 vs. the previous 97.2.

Source---- Valeria Bednarik (Fxstreet)