EURUSD continues falling and has already updated the lows of May 2020.
The major currency pair continues plummeting. The current quote for the instrument is 1.0871.
The demand for the USD as a “safe haven” asset in the currency market remains high. Moreover, the statistics published last Friday gave the “greenback” a significant boost.
For example, the Unemployment Rate in the US dropped to 3.8% in February after being 4.0% in the previous month. Market expectations were quite promising and optimistic but the actual reading turned out to be even better. The Non-Farm Payroll showed 678K after being 481K in January and against the expected reading of 407K. at the same time, the Average Hourly Earnings didn’t change after adding 0.6% m/m (revised data) the month before and against the expected reading of 0.5% m/m.
What does all this mean? First of all, the labour market will easily handle the Fed’s monetary policy tightening that is scheduled this month, such as a 25-point rate hike. The US regulator now may continue raising the benchmark interest rate until the end of 2022 to get inflation under control. Secondly, market players are quite happy with the data and may continue supporting the “greenback”.
The NFP report, which turned out to be much stronger than expected, gave the USD a significant boost. In the mid-term, the American currency is expected to rise, thus making EURUSD fall.
Later today, the economic calendar will offer some data, and the report worth paying attention to is the Consumer Credit in the US. It may provide insight into the population’s finances.
Source: Roboforex
