The Euro is sliding down. Overview for 01.07.2021

EURUSD continues falling; the “greenback” is waiting for the news. 

The major currency pair is slowly falling in anticipation of the American statistics. The current quote for the instrument is 1.1846.

The statistics from the Euro Area published yesterday showed that the CPI Flash Estimate was 1.9% y/y in June, the same as expected, after being 2.0% y/y in May. The Core CPI Flash Estimate showed 0.9% y/y and matched market expectations. The inflation target in the Euro Area is 2.0%. 

The USA started publishing numbers on its labor market and the first report was the ADP Non-Farm Employment Change, which showed 692K in June after being 886K in the previous month and against the expected reading of 555K. The actual reading is quite good for the USD. 

There is no direct correlation between ADP and NFP, which is scheduled for Friday. However, the ADP helps to understand the market sentiment and it’s quite positive.

Today, the Euro Area is going to report on the German Final Manufacturing PMI, which is not expected to spring any surprises. Also, there will be a report on the Unemployment Rate in the Euro Area for May, which may remain at 8.0%. 

Later in the evening, the USA will publish a weekly report on the Unemployment Claims, which may show 388K after being 411K last week. It would be excellent support for the USD