The Euro is slowly recovering. Overview for 21.08.2020

EURUSD continues growing slowly after a recent global correction.

The Euro is still recovering against the USD after a recent plunge. The current quote for the instrument is 1.1872.

The effect of the FOMC Meeting Minutes published a couple of days ago is still working, although investors believe that an additional stimulus package is ahead.

The statistics published yesterday showed that the Unemployment Claims in the USA was 1.106M last week against the expected reading of 930K. It was quite unexpected because the week before the indicator was 971K, the first time below 1M since March 2020, which made market players pretty happy. However, it appears that it was just a local decline.  

Expectations about the labor market stabilization prevent the USD from falling more significantly. Investors believe that the money printed by the Fed and pumped into the economy is about to produce an effect soon. Still, signals from the economy are rather mixed so far. 

Later today, the Euro Area is scheduled to publish preliminary reports on the Manufacturing and Services PMIs in August. The USA is also going to report on the Manufacturing and Services PMIs, as well as the Existing Home Sales, which may provide support to the “greenback”.