On Thursday afternoon, the major currency pair is rising a bit; potential risks are not too high, but they are still here.
EURUDS keeps on trying to rise. The current quote for the instrument is 1.1210.
Yesterday, there were two thing attracting investors’ attention. The first thing is a possibility of the USA’s postponing increased import tariffs on Chinese goods (mostly cars and spare parts) for up to 6 months. It is assumed that official announcements relating to the matter may appear before the end of the week. This factor made market players get interested in risks again, ergo the USD fell while the Euro rose.
The second catalyst lies in attempts of the European Union to deal with the matter relating to debts of some particular countries. The Italian situation is going beyond all bounds, Spain is catching up, and the next economy to report problems may be France. It is so bad for the European currency as to “overshadow” pretty good numbers on the German GDP.
In the Euro Area, there will be Eurogroup Meetings today.
In the afternoon, the USA are scheduled to report on the Unemployment Claims, which is expected to get a little bit better in comparison with the previous week. As a rule, market players don’t respond to this report, because they know that the American labor market is pretty strong.
A bit later, the USA will publish the Building Permits for April. The indicator is expected to remain unchanged, which is neutral for the USD. At the same time, there will be the Housing Starts, which may improve up to 1.21M after 1.14M in March. The data is YoY and shows the numbers of houses that were started in the reporting month. The stronger the reading, the better for the USD, because production of construction materials will have new orders and people will get more new jobs.
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.