The Euro is “making up losses”. Overview for 04.05.2017

On Thursday afternoon, the main currency pair is trading to the upside to “make up losses” after the Fed meeting.

The EUR/USD pair is getting more expensive on Thursday, thus recovering from yesterday’s losses, the current quote for the instrument is 1.0925.

Investors have to respond both to the statistics and fundamental events. Yesterday, the USA Fed meeting was over, which left the rate unchanged at 0.75% – 1.00%. The Fed signaled the market that it intended to continue increasing the rate in 2017 despite some statistics, which fell short of expectations. The regulator sounded pretty confident and provided significant support to the USD.

The statistics published by the Eurozone this afternoon was mostly positive. The Retail Sales expanded by 0.3% m/m in March after adding 0.5% the month before and against expectations of +0.1% m/m. On YoY, the indicator added 2.3% against the expected reading of 2.1%. The Eurostat says that the slowdown in the monthly reading is connected with the decline in sales of clothes.

The Services PMI in the Eurozone increased up to 56.4 points, which is a bit better than expected. The same indicator, but for Germany, was 55.4 points against the expected reading of 54.7 points; for France – 56.7 points against 57.7 points.

The USA also had time to share some statistics, the weekly Initial Jobless Claims report. The indicator decreased up to 238K (-19K). right now, the employment market is providing more objective data after corrections related to the Easter holidays. Today’s report is a good signal for the USD, although investors got pretty accustomed to the stability of the labor market.  

RoboForex Analytical Department