EURUSD stopped falling for a while; the market is consolidating.
The major currency pair stopped plunging and is currently consolidating. The current quote for the instrument is 1.1988.
Janet Yellen, United States Secretary of the Treasury and a former chair of the Federal Reserve, said yesterday that the regulator might raise its interest rates a bit in the future to prevent the American economy from “overheating”. Her words provided the USD with excellent support. Yellen believes that even though the additional spending is relatively small relative to the size of the economy, it could cause some very modest increases in interest rates.
The statistics published yesterday showed that the Factory Orders added 1.1% m/m in March after losing 0.5% m/m in February and against the expected reading of 1.3% m/m. A possible reason for that is the recovery of the Durable Goods Orders. The components of the report show that demand increased for machinery (1.5% vs -0.2% in February), fabricated metal products (4.0% vs 0.4%), computers and electronic products (0.5% vs -0.2%), and primary metals (1.6% vs 1.2%). By contrast, orders for transport equipment were down (-1.6% vs -2.0%), led by civilian aircraft and parts (-46.9% vs 101.7%) and defense aircraft and parts (-20.2% vs -6.0%).
Today, investors should pay attention to the Services PMIs for April to be published by the Euro Area, Germany, France, Italy, and Spain. In addition to that, the alliance will publish the PPI for March.
In the evening, the USA is scheduled to report on the Services PMIs for April from ISM and Markit. Also, this week the country is starting to publish reports on its labor market for April. Today, there will be the first of them, the ADP Non-Farm Employment Change, which may show 872K after being 517K the month before. The stronger the reading, the better for the “greenback”.
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.