EURUSD stopped falling. Overview for 12.06.2020

EURUSD is not plunging on Friday morning; investors are waiting for news. 

The major currency pair slowed down its decline at the end of the week; right now, it is consolidating. The current quote for the instrument is 1.1295.

The statistics published by the USA yesterday showed that the Producer Price Index added 0.4% m/m in May after losing 1.3% m/m in April. The actual reading turned out to be better than expected (+0.1% m/m). The Core PPI, in its turn, lost 0.1% m/m after reducing by 0.3% the month before.  

The weekly report on the Unemployment Claims showed 1.542M, which is better than expected (1.55M) and then previous reading (1.877M). The labor market is slowly recovering, which means that the acute phase of the crisis is really behind. 

After a long pause, US President Donald Trump ranted and raged against the Federal Reserve System and its Chairman Jerome Powell. Trump twitted that the Fed made too many mistakes but the President saw the numbers and believed that the third quarter would be good, while the fourth one – great.

It looks like it was Trump’s optimism, which is usually considered inappropriate, that prevented the USD from being sold. Investors were quite nervous after rumors about the second wave of the coronavirus in July. However, Trump assured everybody that the vaccine against the COVID-19 would be ready soon, as well as the therapy for treating the disease. 

Powell’s very cautious and it’s quite clear why: the labor market suffered awful stress and the damage to the country’s economy is rather murky so far. This is the reason why the regulator has to be very careful with its comments.