EURUSD wasn’t strong enough. Overview for 06.10.2022

The major currency pair is consolidating on Thursday. The current quote for the instrument is 0.9910.

Yesterday, a situation arose when investors seemed to be ready to break parity amid global risk attitude and sentiment improvement. However, cautiousness prevailed.

The final data published by the Euro Area showed that the Services PMI dropped to 48.8 points in September against the previous estimate of 48.9 points. Nothing dramatic, but the fact that the indicator remains below 50 points is rather negative. The German Services PMI showed 45.0 points against the expected reading of 45.4 points.

The US started reporting on the labour market. So far, it’s quite good. The ADP Non-Farm Employment Change report showed 208K in September after being 185K in August (revised upwards) and against the expected reading of 200K. There is no direct correlation between reports from ADP and NFP, but the former still provides a general impression of what is going on in the labour market.

Later today, the Euro Area will report on the Retail Sales in August. The indicator is expected to lose 0.3% m/m, but the actual reading might be much lower due to record-breaking inflation. Investors also should pay attention to the ECB Monetary Policy Meeting Accounts.

In the evening, the US will release the weekly data on the Unemployment Claims.