The major currency pair recovered after a 2-day plunge and is currently waiting for the news.
EURUSD is stable on Friday; investors are saving strengths in anticipation of the news. The current quote for the instrument is 1.0758.
It seems like market players managed to take their minds off global risk aversion. It made the “greenback” retreat, while other traded currencies had a chance to recover.
The statistics published yesterday were rather mixed. For example, the PPI in the Euro Area added 1.2% m/m in April after gaining 5.3% m/m in March and against the expected reading of 2.5% m/m. On YoY, the indicator turned out to be better than expected.
The US started reporting on the labour market a bit later than usual due to the national holiday earlier this week. The ADP Non-Farm Employment Change showed 128K in May after being 202K the month before and against the expected reading of 295K. There is no direct correlation between reports from ADP and NFP to be released on Friday, but they are sometimes pretty close.
The Factory Orders gained 0.3% m/m in April against market expectations of 0.8% m/m. As a rule, the indicator offers no surprises because the overall situation is already displayed in the Durable Goods Orders report. However, the spring of 2022 is not the time when you can be sure of anything.
Later today, the US will continue reporting – the Unemployment Rate is expected to drop to 3.5%, while the Non-Farm Payrolls might show 325K after being 428K in the previous month.
Strong labour market readings will provide significant support to the “greenback”: if the employment in the country is fine, then consumers are handling inflation quite well and the CPI may continue rising. This, in turn, will make the US Fed act more aggressively.
Source: Roboforex
