The USD is attacking the Eurocurrency. Overview for 30.08.2017

The main currency pair is speeding up its decline after the USA published several statistical reports.

The EUR/USD pair is falling, and pretty fast. The current quote for the instrument is 1.1910; Right now it’s more than one hundred pips away from the highest levels over the last two years and a half.

The statistics published by the USA today was impressive. First of all, the ADP published the Non-Farm Employment Change, which expanded by 237K in August after adding 201K the month before and against expectations of 185K. On Friday, they will report on the Non-Farm Payrolls. There is no direct correlation between ADP and NFP, but the numbers are looking pretty good so far.

The second estimate of the GDP Growth Rate showed that the country’s economy expanded by 3.0% q/q. The first estimate was 2.6% q/q; the expected reading was 2.7% q/q. At the same time, the GDP Price Index added 1.0% q/q. the same as the quarter before.

The Personal Consumption Expenditure continues boosting the economy. In the second quarter, the indicator expanded by 3.3% q/q after adding 1.9% q/q in the first one.

As a matter of fact, the USD got a very serious impulse to improve. Now it’s very important to understand whether investors are really ready to believe that the American economy is fundamentally strong and stop burying the USD for no reason. Otherwise, the current decline may be just another correction and, as a result, the main currency pair will resume rising in a while.

RoboForex Analytical Department