EUR/USD: Euro drops after German, US data
|The greenback strengthened on Wednesday, and the EURUSD pair fell to the 1.12 level, following a series of macro data both from the EU and US.
Earlier in the data, data showed that the German unemployment rase to five-year highs, and it printed 6.4%, which was slightly better than 6.6% expected by analysts. The unemployment change for June also improved to 69,000 from 238,000 in May.
Moreover, German retail sales jumped higher in May to 3.8% year-on-year (up from -6.4% previously), while the monthly change accelerated sharply. from -6.5% to 13.9%.
The focus then switched onto the US data. The ADP employment report showed the US economy created 2,369 K new jobs in June, which was below expectations of 3,000K. However, the last month's number was revised from -2,760K to 3,065K, which was a very positive sign. Although, these statistical errors could occur in the official figures for weeks to come.
Later in the day, the US manufacturing ISM is forecast to improve notably to 49.5f from 43.1 previously.
Overall, the start of the new quarter was not so positive as the risk-off trading prevailed in the markets, which benefited the US dollar. Equities also fell as COVID cases continue to rise, unfortunately.
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