The Euro stumbled again. Overview for 06.05.2022

After taking a short break, EURUSD resumed its decline. 

The major currency pair got back under bearish pressure quite quickly. The current quote for the instrument is 1.0558.

The weekly Unemployment Claims report published yesterday by the US showed 200K against the expected reading of 182K. The difference is quite acceptable – the current situation in the labour market doesn’t raise concerns. 

The Euro enthusiasts negatively responded to the words of the Member of the Executive Board of the European Central Bank Philip Lane, who said that the target date for the rate hike wasn’t important at all. He emphasized that the regulator was planning to raise the rates gradually. In addition, Lane said the Euro Area was very unlikely to get back to inflation below the target level like it was before the pandemic. A significant energy price surge, which has been seen since the summer of 2021, caused a serious macroeconomic shock and its consequences will be here for a long time.  

Not many investors were inspired by Lane’s comments – they are way too realistic. 

Later today, as it usually happens on the first Friday of each month, they will switch their attention to some more reports on the US labour market. The Unemployment Rate in April is expected to reduce to 3.5%, while the Average Hourly Earnings might remain the same. The Non-Farm Payrolls might add 391K after gaining 431K in March.

Strong numbers will support the “greenback”, which is already too strong. On the other hand, weak or neutral reports are unlikely to trigger an enormous controversy.

Source: Roboforex

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