EURUSD is falling on Friday; investors are escaping risks again.
After taking a short break, the major currency pair is back to falling. The current quote for the instrument is 1.1072.
Possible reasons for this decline are that market players are saving their strengths in anticipation of the US labour market statistics and global geopolitical tensions.
The statistics published by the US yesterday were rather mixed. For example, Personal Income added 0.5% m/m in February, the same as expected, after expanding by only 0.1% m/m in January. At the same time, Personal Spending added just 0.2% m/m after expanding by 2.7% m/m the month before and against the expected growth of 0.5% m/m.
What could make Americans spend less? An upsurge in prices. Yes, increasing inflation was no secret to anybody but after retail energy prices went up, it had an impact on everyone.
The weekly report on the Initial Jobless Claims showed 202K after being 188K last week (revised) and against the expected reading of 195K. Slight fluctuations in the indicator are quote normal – the point is that the global tendency shows an improvement.
So, today the US labour market will take the centre stage again. Average expectations imply that the Unemployment Rate might drop to 3.7% (previous 3.8%), the Average Hourly Earnings might show +0.4% m/m, while the Non-Farm Payrolls might add 492K after expanding by 678K in February.
The stronger the data, the better for the “greenback”.
One should remember that the labour market stability might be a substantial argument for the US Fed in its rate hike strategy.
Source: Roboforex
