The Euro gave in. Overview for 02.06.2022

EURUSD retreated to its weekly lows amid global risk aversion.

The major currency pair is hanging not far from its weekly lows. The current quote for the instrument is 1.0680.

Investors are getting more and more interested in “safe haven” assets and it’s very good for the “greenback”.

The statistics from the US published yesterday showed that the ISM Manufacturing PMI went from 55.4 points in April to 56.1 points in May against the expected reading of 54.4 points. The components of the report showed that the Manufacturing New Order expanded up to 55.1 points, while the Manufacturing Prices dropped to 82.2 points (previously 84.6 points).

The report turned out to be much better than expected and provided the USD with excellent support. The numbers say that the US economy was feeling much better in May than everyone expected. It’s good news for the “greenback”.

One may assume that the stable numbers together with the US bond yield growth might push the USD upwards. In this case, EURUSD might face another significant decline.

Later today, the US will report on its labour market. Market players should pay attention to the ADP Non-Farm Employment Change for May, the Unemployment Claims release, and the Factory Orders for April.

The stronger the data, the better for the USD.