EURUSD managed to recover a little bit after plunging earlier; however, investors are very cautious.
The major currency pair may get under pressure on Thursday. The current quote for the instrument is 1.0025.
Sure, EURUSD reached parity and even moved a bit higher, but it will be extremely difficult to stay there. The “greenback” is currently supported by expectations of further tightening of the US Fed’s monetary policy. At the same time, the Euro is being pressured by the energy crisis in Europe, which isn’t planning to go anywhere.
The ADP Employment Change report published yesterday showed 132K in August after being 128K the month before and against the expected reading of 300K.
Probably, the labour market is slowly switching to more conservative mechanisms of hiring, while enterprises and businesses are trying to understand very controversial economic signals.
There is no direct correlation between ADP and the Non-Farm Payrolls report to be published on Friday. However, overall sentiment after the ADP release is not too optimistic. Nevertheless, one may assume that the labour market is slowly turning from creating too many jobs to something more regular.
Later in the evening, the Euro Area is scheduled to release final numbers on Manufacturing PMI for August, as well as Unemployment Rate in July. The US will report on Unemployment Claims and Construction Spending in July.
Source: Roboforex
