The Euro is looking weak. Overview for 02.07.2021

EURUSD continues falling without even waiting for the American statistics to be published.

The major currency pair remains weak on Friday. The current quote for the instrument is 1.1840.

Bears are not so active but there are still more of them than bulls. In anticipation of the American statistics on the labor market, investors favor the “greenback”. They are expecting solid reports and will be waiting for the response of the US Fed. 

Strong numbers may pressure the American regulator and its stance on stimulus programs and interest rates. This is where this optimism comes from.

The USD was supported by the weekly report on the Unemployment Claims, which showed 364K after being 415K the week before and against the expected reading of 388K. It’s very good news. 

At the same time, market players barely paid attention to other reports. The Markit Final Manufacturing PMI was 62.1 points in June against the previous estimate of 62.6 points. The ISM Manufacturing PMI was also weaker than expected and showed only 60.6 points. 

Today, investors’ attention is focused on the Unemployment Rate, which may drop from 5.8% in May to 5.6% in June, and the Non-Farm Employment Change, which is expected to go from 559K to 725K over the same period of time. 

The stronger the reports, the better for the USD.