EUR/USD: PCE data in market focusEuro/US DollarFX:EURUSDXBTFXThe past week was relatively calm when it comes to currently important US macro data. The FOMC meeting minutes were published revealing that policymakers are becoming increasingly concerned that inflation could remain above the Fed’s 2% target for longer than expected, largely due to elevated energy prices and geopolitical risks. While the committee kept interest rates unchanged, a growing number of officials signaled openness to future rate hikes if inflation does not cool, although others still favored eventual rate cuts if economic conditions soften later this year. Other macro data posted for the week showed preliminary Building Permits increase in April by 5,8% m/m, while Housing Starts dropped by -2,8% m/m. Friday brought the University of Michigan Consumer Sentiment index final for May of 44,8, while five year inflation expectations were a bit increased to 3,9% from previous estimate of 3,5%. The balance of trade in the Euro Zone dropped in March to the level of Euro 7B, from previous months Euro 11B, however, the figure was better from market estimates of Euro 5,4B. The Producers Price Index in Germany increased by 1,2% m/m and 1,7% y/y, by 0,2 pp higher from estimates. The Inflation rate in the Euro Zone final for April was standing at 1% m/m and 3% y/y in line with market estimates. Core CPI was higher by 2,2% y/y in April. The S&P Global Manufacturing PMI flash for May in Germany was at the level of 49,9, a bit lower from forecasted 51. The GfK Consumer Confidence in June in Germany was in a negative territory of -29,8, below market estimates of -34. The Ifo Business Climate in Germany in May was at the level of 84,9 in line with expectations. As inflation fears continue to hold, markets continued to favor the US Dollar for the second week in a row. The currency pair started the week around the level of 1,1660, and swiftly reverted toward the downside, testing the 1,16 support level. The lowest weekly level was at 1,1580. The RSI continues to slowly move around the level of 40, indicating a probability that a clear oversold market side could be reached soon. Moving averages of 50 and 200 days are currently moving as two parallel lines, increasing the probability of another cross in the coming period. Current charts are showing some modest potential for a short reversal, but a stronger shift toward the upside should not be expected from this point. Higher probability is the continuation of the current short term trend. Still, for the week ahead, in case that 1,16 support holds ground, markets could revert back and test once again levels around 1,1680 eventually 1,17 resistance line. In case that 1,16 is broken after testing, the next level to watch would be 1,15 short term support. The PCE Price index for April is scheduled for a release during the week, which could bring higher volatility to the market. Important news to watch during the week ahead are: EUR: Economic Sentiment in the Euro Zone in May, Unemployment rate in Germany in May, Inflation rate in Germany preliminary for May USD: PCE Price Index for April, Durable Goods Orders in April, Personal income and Personal spending in April, New Home Sales in April,