The major currency pair is barely moving on Friday afternoon; investors are waiting for reports on the US Labor market.
EURUSD is looking very tired after such a volatile trading week and doesn’t want to move. The current quote for the instrument is 1.1373.
Probably, investors are saving strengths in anticipation of updated reports on the US Labor market to be published in the evening. The ADP Non-Farm Employment Change, which was revealed yesterday, showed 179K in November after being 229K in the previous month and against the expected reading of 195K. As we mentioned on several occasions, there is no direct correlation between ADP and NFP, but this time investors aren’t so sure.
Today’s statistics from the Euro Area showed that in the third quarter 2018 the European economy was improving, but as slow as it did the quarter before. The indicator added 0.2% q/q, the same as expected. On YoY, the GDP added 1.6% against the previous estimate of 1.7%. This is the slowest pace over the last four years.
It became known today that Italy was going to submit the revised budget draft to the European Commission next week. The draft proposed earlier had 2.4% deficit of the country’s GDP in 2019, given that the budget deficit in 2018 was not more than 1.8% of the GDP. The European Union and Commission were outraged and shocked so much, that they assured Italy of being fined and having a lot of troubles. This situation continued for several months and obviously resulted in Italy’s “defeat”.
However, any changes to the better in this case are good for the Euro.
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.