The Euro stopped falling. Overview for 06.04.2020

06.04.2020

On Monday, the major currency pair is consolidating; investors are monitoring the news. 

EURUSD stopped falling early in the new week of April. The pair is consolidating while market players are analyzing what is going on. The current quote for the instrument is 1.0812.

As for the macroeconomic statistics, today is going to be a pretty calm day: the calendar has only two events that investors may find interesting. The first one has already been released – the German Factory Orders, which lost 1.4% m/m in February after adding 4.8% m/m the month before. However, the indicator was expected to fall. A bit later, the Euro Area will report on the Sentix Investor Confidence in April, which may go down from -17.1 points to -30.5 points.  

The statistics published by the USA last Friday showed that the Unemployment Rate was 4.4% in March after being 3.5% in the previous month and against the expected reading of 3.8%. The Non-Farm Employment Change went from 275K to -701K over the same period of time. Market expectations implied  100K. In fact, no one could really predict how deep the sector could fall, because the period of firing people and cutting jobs has just started. The March readings don’t seem to reveal all stress that the labor market is exposed to, that’s why the April report is expected to be more insightful.

The Average Hourly Earnings added 0.4% m/m in March after expanding by 0.3% m/m the month before and against the expected reading of +0.2% m/m. this might seem interesting because those employees who are still working have to handle more duties at work than before.  

In fact, the current situation in the sector is problematic but not critical. For instance, the Morgan Stanley report talks about more dismal prospects: they assume that the unemployment in the USA may skyrocket up to 15.7% in the second quarter 2020 and the entire labor market may lose about 21M jobs. 

Attention!

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.