The main currency pair is getting more expensive on Tuesday despite quite complicated statistics.
Buyers in the EUR/USD pair still have strengths judging by today’s reactions. The current quote for the instrument is 1.1160; the daily growth is 0.25%.
There were no American investors on the market yesterday due to the holiday, but right now they are back to trading and ready to act. Janet Yellen’s comments made last Friday have been already included in the prices, and now the matter depends on the statistics. This Friday, the USA are going to publish several reports on the employment market in May, which may somewhat influence the decision of the FRS relating to the interest rate. At least, that’s what the market is discussing.
The daily statistics published by the Eurozone was quite complicated. The unemployment rate in April was 10.2%, the same as expected. The employment market in the region moves quite slowly, and no one usually waits for anything special from this report. However, investors waited for more detailed statistics on the inflation. According to the published data, in May the CPI reduced by 0.1% y/y as predicted. This is better than the decrease by 0.2% a month before, but the indicators continues being negative. It means that there are still problems with prices, mainly because of “hidden” energy costs. The ECB can hardly do anything with this, except for continue the QE program and wait. In case of other components of the inflation report, such as food products, service costs, excise goods, the prices are growing. but it has little influence on the final number.
Once the “shadow” of the Federal Reserve disappeared form the market, investors started buying their previous sales. So far, the Eurodollar remains far below 1.12, but if American monetary authorities withhold comments, the European currency may strengthen a bit more.
RoboForex Analytical Department
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