The Euro is quite calm at the beginning of the week. Overview for 05.02.2018

The main currency pair “processed” the statistics published last Friday and is once again trading steadily.

On Monday morning, EURUSD is trading a bit away from the levels it reached last Friday. The current quote for the instrument is 1.2453.

The end of last week featured a lot of statistics. The USA reported on the labor market readings in January, where investors saw much more than just numbers. The Unemployment Rate remained at 4.1%, just as expected. The Non-Farm Employment Change added 200K in the same month, which is ahead of expectations. The Average Weekly Hours decreased a little bit, but the Average Hourly Earnings expanded by 0.3% m/m and 2.9% y/y. As it already happened before, investors focused on the components of the reports.

In this case, I mean the latter report. The reading is the highest since the middle of 2009 and investors immediately made a consistent comparison: if businesses create new jobs and increase salaries, it means that they are ready to retain high-value assets and have all opportunities to do this. In this light, salaries will continue rising, thus influencing the CPI. And if the inflation rises faster than planned, the Fed will have a free hand to increase the key rate more than three times this year.  

Taking into account all of this, the USD tried to recover, but not too successfully.

The main currency pair will have enough reasons to move actively. Apart from the reports that are scheduled for publishing, investors are expecting the ECB Economic Bulletin on Thursday and speeches to be delivered by the representative of the USA and the Eurozone.  

RoboForex Analytical Department