The Euro continues consolidating. Overview for 06.05.2021


EURUSD intends to keep moving downwards but is consolidating so far. 

The major currency pair remains in a difficult position and may resume falling in case a proper driver appears. The current quote for the instrument is 1.2006.

The employment statistics published yesterday were way behind the expectations. For example, the ADP Non-Farm Employment Change showed 742K in April after being 565K in the previous month and against the expected reading of 800K. Of course, it’s worse than expected but much better than the March data, so it should be considered positive. Moreover, it’s a pretty good start for the labor market, although there is no direct correlation between ADP and NFP. 

The Markit Services PMI increased up to 64.7 points in April after being 63.1 points the month before. The employment rose, so did the number of uncompleted works, and taken together these factors “smoothed” the pressure from the low capacity utilization. Businesses were suffering from uncertainty with new orders and their stability but it didn’t prevent the global indicator from growing. The components of the report showed that input costs advanced at an unprecedented rate, due to hikes in supplier prices and greater transportation fees and were the steepest since October 2009.

According to Markit, some companies are recording a higher client demand, as well as an increase in new sales parameters. 

The ISM Services PMI in April was 62.7 points, which is weaker than in March. 


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.