The Euro is recovering. Overview for 04.09.2017

After the USA published some mixed statistics last Friday, the Dollar is once again “in crosshairs“.

The EUR/USD pair is growing on Monday. The current quote for the instrument is 1.1910.

On the one hand, the news relating to nuclear weapons tests by North Korea counted against the USD in favor of “safe haven” assets, such as the Yen. On the other hand, statistical reports on the employment market published last Friday raise more questions than they answer.

So, the Non-Farm Employment Change expanded by 156K in August after adding 189K in July and against the expected reading of 180K. Surprisingly, the Unemployment Rate increased from 4.3% to 4.4%, although it wasn’t expected to change at all. The Average Hourly Earnings expanded only 0.1% m/m, which is less than expected and was the July reading.

Other reports, such as the Manufacturing PMI, the Construction Spending, and the Consumer Sentiment made investors worry even more and left a lot of questions open.

As a rule, the labor market is considered as a “citadel of stability and prosperity” for the US economy. At least, it was over the last three or four years, when the sector was incredibly stable and improving. Today, when the country’s economy is in some kind of balance and the promised reforms failed, it’s difficult for the economy to improve and progress by means of single catalysts only. This fact, in its turn, is counting against the USD. Again.

Today, American markets are closed due to the Labor Day celebration, so one shouldn’t expect the EUR/USD pair to be very volatile.

RoboForex Analytical Department