The Euro is waiting for the evening statistics. Overview for 02.02.2018

On Friday morning, the main currency pair is trading close to 1.25 and waiting for the news.

EUR/USD is drifting near 1.25 at the end of the week. On Friday, investors’ attention is focused on the reports on the US labor market to be published in the evening. They will provide the January data: so far, expectations are positive, but much depends on the components of the major report.

Unemployment Rate is expected to remain the same, at 4.1%. Both the country’s government and the Federal Reserve will be okay with this number. As for the Non-Farm Employment Change report, it is expected to add from 170K to 190K. The bigger the number, the better for the USD. Apart from this, one may pay attention to the Average Hourly Earnings reading.

This time, the statistics are very important. This week, Janet Yellen has finally left her position of the head of the US Federal Reserve to Jerome Powell. Powell is a protégé of the US President Donald Trump, who criticized the Fed earlier several times for its too soft monetary policy. In this light, one may pay close attention to what Powell will say in his first speech as the Chairman of the American regulator, especially when it comes to the key rate.  

The stronger the labor market is, the more chances the Fed has to raise the rate earlier than it was announced. However, the door swings both ways: if the market isn’t doing very well, the regulator will have to postpone the rate hike.

In this light, later in the evening EUR/USD may become more volatile than usual.

RoboForex Analytical Department