The Euro is once again captured by bears. Overview for 03.05.2017

The EUR/USD pair is falling in the middle of the week; investors are waiting for the end of the Fed meeting.

On Wednesday afternoon, the EUR/USD pair is still a bit under pressure. The current quote for the instrument is 1.0910.

Statistical reports published by Germany in the morning might provide support to the main currency pair, but the story of the day for the market is the end of the USA Fed meeting.

The Unemployment Rate in Germany remained at 5.8% in April, whereas the Unemployment Change decreased more than it was expected.

The German unemployment remains at the lowest level over 27 years, i.e since the moment they renewed its calculations in 1990. The labor market is improving, and this is a very good signal. However, the migrant influx doesn’t spoil the big picture, because the labor demand in the country’s economy is still very high.

In the afternoon, the Eurozone reported on the GDP in the first quarter 2017. The indicator expanded by 0.5% q/q (+1.7% y/y), just as expected. The rate of growth remains stable and the absence of “mood swings” is a good signal. The PPI lost 0.3% m/m in March, although it was expected to decrease only by 0.1% m/m. on YoY, the indicator added 3.9% against the expected reading of +4.1%.

However, all reports from the Eurozone seemed to fall through the cracks. Investors’ attention is focused on the Fed meeting, which will be over this evening, although no one expects any significant results. There will be no press conference this time. Still, market players are being kept in suspense and may use any information to support the USD.

RoboForex Analytical Department