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.
Trading FX/CFDs on margin bears a high level of risk, and may not be suitable for all investors. Before deciding to trade FX/CFDs you should carefully consider your investment objectives, level of experience, and risk appetite. You can sustain significant loss.
Recommended Content
Editors’ Picks
EUR/USD steady below 1.0800 after US PCE meets expectations
EUR/USD remains depressed below 1.0800 after soft French inflation data, amid minimal volatility and thin liquidity on Good Friday. The pair barely reacted to US PCE inflation data, with the Greenback shedding some pips. Fed Chair Jerome Powell set to speak ahead of the weekly close.
GBP/USD hovers around 1.2620 in dull trading
GBP/USD trades sideways above 1.2600 amid a widespread holiday restraining action across financial markets. Investors took a long weekend ahead of critical United States employment data next week. Fed Chair Powell coming up next.
Gold price sits at all-time highs above $2,230
Gold price holds near a fresh all-time high at $2,236 in thinned trading amid the Easter Holiday. Most major world markets remain closed, although the United States published core PCE inflation, the Federal Reserve’s favorite inflation gauge.
Jito price could hit $6 as JTO coils up inside this bullish pattern
Jito (JTO) price has been on an uptrend since forming a local bottom in early January. Since then, JTO has revisited the key swing point formed in early December, suggesting the bulls’ intention to move higher.
Key events in developed markets next week
Next week, the main focus will be inflation and the labour market in the Eurozone. We expect services inflation to be impacted by the easter effect, while the unemployment rate to be unchanged.